Document ID: chunk:federal_register_of_legislation:F2013C00808:body:0:p8
Version: federal_register_of_legislation:F2013C00808
Segment Type: other
Provision Reference: 
Character Range: 19083–21944

Corporations Law) by an entity providing privately sourced capital to the fund;

            (d) have a director who is or has been an associate of the fund manager; or

         (e) have any other relationship with the fund that the Board considers inappropriate.

         32. The Board may make provision in the IIF guidelines, licensing agreement or other contractual documents relating to an IIF licensed fund to exclude any other persons  from being eligible investee companies.  The Board must make such exclusions on the basis of activities, corporate structure, industry category, sources of revenue or any  other generally applicable basis.

Determination of an eligible investment company

         33. Investment decisions will be made by fund managers, but fund managers may request a determination by the Board as to whether a company is an eligible investee company.    If requested to do so, the Board must determine whether or not a company is an   eligible investee company.

         34. The Board is not restricted in placing conditions, qualifications or disclaimers on a determination of whether or not a company is an eligible investee company.

         35. The Board may levy fees that do not exceed the costs incurred by itself and the Department in making a determination under clause 33.  The Board may refuse to   make or notify a determination under clause 33 until those fees are paid by the IIF licensed fund.

Control of an eligible investee company by an IIF licensed fund

         36. The Board may make provision in the IIF guidelines, licensing agreement or other contractual documents relating to an IIF licensed fund to limit the level of control exerted by the fund on an eligible investee company.  In doing so the Board must consider:

         (a) the objectives of the IIF program;

         (b) the capital generally required by companies at the early stage of their development and the cost of such capital at each stage of investment;

         (c) the ability of the fund to realise a return from an investment in small, early stage companies;

         (d) the ability of the fund to protect its investment in small early stage companies;

         (e) the role of the fund manager in providing advice, guidance and influence to small early stage companies; and

         (f) any other matter the Board thinks fit.

Operation of the IIF licensed funds

         37. The Board must include requirements to the following effect in the IIF guidelines:

         (a) the ratio of Government sourced capital to privately sourced capital contributed to an IIF licensed fund will not exceed 2:1;

         (b) an IIF licensed fund may be a unit trust, company or other structure approved by the Board.  A Pooled Development Fund cannot invest in or provide money to an IIF licensed fund;

         (c) an IIF licensed