Liquidation Distributions to Members in Worlds With and Without Par Values

Although par values of shares were abolished by the Corporations Law Reform Act 1998, they continue in use where agreements predating this Act, or legal doctrine underpinning the agreements, depend on them. One such doctrine, the principle of equality, is invoked in winding-up if agreements about distributions to members fail or do not exist. This paper examines how the principle of equality may be implemented in the post-commencement period. It considers shares that had par values, now abolished but potentially revivable, and no-par shares issued after commencement. The major theme is that par value abolition has undermined the case law on the equality principle, and that oncesettled law has become uncertain.