(1)Upon the cancellation by the appropriate registrar of the registration of the company or of the registered society, the company or society is converted into a CIO, a body corporate—
(a)whose constitution is that proposed in the application for conversion,
(b)whose name is that specified in the constitution, and
(c)whose first members are the members of the converting company or society immediately before the moment of conversion.
(2)If the converting company or society had a share capital—
(a)upon the conversion of the company or society all the shares are by virtue of this subsection cancelled, and
(b)no former holder of any cancelled share has any right in respect of it after its cancellation.
(3)Subsection (2) does not affect any right which accrued in respect of a share before its cancellation.
(4)The conversion of a company or society into a CIO does not affect, in particular, any liability to which the company or society was subject by virtue of its being a charitable company or registered society.