Document ID: chunk:federal_register_of_legislation:F2009B00251:body:0:p12
Version: federal_register_of_legislation:F2009B00251
Segment Type: other
Provision Reference: 
Character Range: 32437–35582

The Board may require a licensed fund to have a diversity of persons providing the private capital;

             (f)                a licensed fund must provide funding to eligible companies and eligible projects by taking up the appropriate form of economic interest.

             (g)               at least 60% of a licensed fund's committed capital must be invested within 5 years of the granting of the PSF program licence, unless the Board agrees otherwise;

             (h)               a licensed fund must not invest in or provide to an eligible company or an eligible project more than $1 million unless the Board agrees otherwise.  Co-investment by 2 or more licensed funds is permissible but the total funds invested in a single company or project may not exceed $1 million, unless the Board agrees otherwise.  The Board may develop criteria to which it will have regard in exercising its discretion, although those criteria need not be exhaustive of the relevant matters that it may consider in any particular case;

             (i)                 transactions carried out by a licensed fund in relation to eligible companies and eligible projects must be carried out at arm's length;

             (j)                 a licensed fund must not give any person any benefit which, if the licensed fund was a public company and that person was a related party, would require approval of the kind contemplated by Chapter 2E of the Corporations Act;

             (k)               an eligible institution or a person who has invested in or provided amounts to a licensed fund must not influence or attempt to influence the individual investment or financing decisions of the fund manager;

             (l)                 a licensed fund must have an appropriate number of suitably qualified and experienced investment managers having regard to the size and type of the fund;

             (m)             monies provided to an eligible company or eligible project must be applied to advance the company or project in the commercialisation of its R&D activities through such things as prototype development, trialing, business case development, market research, administration, production and management of intellectual property; and

             (n)               any other requirements the Board thinks fit.

PART 7—TIMING OF PROVISION OF CAPITAL TO LICENSED FUNDS

Drawdown of capital

         39 The Board must determine in the PSF guidelines, the licence agreement or other documents relating to a licensed fund, the process by which Commonwealth program capital will be invested in or provided to the fund.  In determining that process, the Board may:

             (a)                require that Commonwealth program capital be invested or expended within a reasonable period by the fund;

             (b)               where it considers it appropriate to do so, withhold Commonwealth program capital from being drawndown; and

             (c)                impose any other requirements that the Board thinks fit, having regard to the policy objectives of the PSF program..

PART 8—INFORMATION TO