Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p18
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 18/58)
Character Range: 2343949–2346670

entity can be taken to meet requirements relating to location in Australia
 (14C) In applying subsection (4) to a company in relation to its investment in another entity, the other entity is taken, for the purposes of subparagraph (4)(b)(ii), to meet the requirements of subsection (2) if *Industry Innovation and Science Australia determines under section 25‑15 of the Venture Capital Act 2002 that:
 (a) the activities of the other entity are complementary to one or more of the activities of the company or its other controlled entities; and
 (b) the company meets the requirements of subsection (2) of this section at the time the investment is made, or will meet those requirements at the time the investment is proposed to be made.

Convertible notes and convertible preference shares
 (15) To the extent that an investment by an entity consists of the acquisition of a *share in a company by converting a *convertible note, or a convertible preference share, issued by the company, the investment is, for the purpose of determining whether the company meets the requirements of subsections (2) to (7), taken to have been made at the time when the entity last acquired the convertible note or convertible preference share.

118‑427  Meaning of eligible venture capital investment—investments in unit trusts

Requirements for an eligible venture capital investment
 (1) An investment is an eligible venture capital investment if:
 (a) it is *at risk; and
 (b) it is either:
 (i) an acquisition of units in a unit trust; or
 (ii) an acquisition of options (including warrants) originally issued by or on behalf of the trustee of a unit trust to acquire units in the unit trust; or
 (iii) an acquisition of *convertible notes (other than convertible notes that are *debt interests) issued by or on behalf of the trustee of a unit trust; and
 (c) the unit trust meets the requirements of subsections (3) to (8); and
 (d) the sum of:
 (i) the total amount that the partnership has invested in all the *equity interests and *debt interests that the partnership owns in the unit trust; and
 (ii) the total amount that the partnership has invested in all the equity interests and debt interests that the partnership owns in any entities that are *connected entities of the unit trust;
  does not exceed 30% of the partnership's *committed capital.

Certain entities not treated as connected entities
 (2) In applying subparagraph (1)(d)(ii), ignore an entity that is a *connected entity of the unit trust only because it is an *associate of the unit trust because of an investment made in the entity by the partnership.

Location within Australia
 (3) The unit trust:
 (a) must, at the time the investment is made, carry on