Document ID: chunk:federal_register_of_legislation:F2009B00251:body:0:p9
Version: federal_register_of_legislation:F2009B00251
Segment Type: other
Provision Reference: 
Character Range: 24139–27181

of a licence agreement.

PART 5—ELIGIBLE COMPANIES AND ELIGIBLE PROJECTS

Eligible companies

         27.               An eligible company  is a company, at the time of initial investment by a licensed fund:

      (a) which is undertaking pre-seed stage R&D activities;

      (b) which is incorporated in Australia;

             (c) which, if not controlled by some or all of the qualifying researchers actually carrying on those R & D activities within the company:

             (i) is controlled by an eligible institution or qualifying researchers; or

                 (ii) utilises in its R & D activities intellectual property at least 50% of which is owned by eligible institutions or by qualifying researchers;

             (d) has no sales revenue;

            (e) which has a majority of the personnel carrying on its R & D activities (by number) and assets (by value) inside Australia;

        (f) which will use all of the licensed fund's initial investment in Australia; and

        (g) which meets such other requirements as the Board thinks fit,

        and whose purpose is at all times to commercialise the outcomes of those R&D activities and not solely or primarily research.

Eligible projects

         28 An eligible project is a project which, at the time of initial investment by a licensed fund:

            (a)            involves pre-seed stage R&D activities being carried out either within or derived from an eligible institution ;

            (b)           has at least 50% of the  intellectual property being applied in it owned by either or both of the eligible institution in or by which it is being carried on or by qualifying researchers;

            (c)            is controlled or supervised by an eligible institution and be undertaken in Australia;

            (d)           has not generated any sales revenue;

            (e)                  has not commercialised the results of any R&D activities to the extent of selling or otherwise disposing of them in the ordinary course;

            (f)              has a majority of the personnel engaged in it inside Australia;

            (g)             will use all of the licensed fund's initial investment Australia; and

            (h)             meets such other  requirements as the Board thinks fit,

         and which is carried on at all times for the purpose of commercialising the results of those R&D activities and not solely or primarily for research purposes.

Qualification

         29 Despite clauses 27 and 28, a company will cease to be (and will be taken never to have been) an eligible company and a project will cease to be (and will be taken never to have been) an eligible project, if in the opinion of the Board the initial funding provided to it by a licensed fund was made in an amount or at a time for the primary purpose of qualifying that company as an eligible company or that project as an eligible project.

Eligible investments

         30 The Board must make provision