Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p14
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 14/58)
Character Range: 2334006–2336615

part of the amount invested, unless:
 (a) the other entity:
 (i) is *connected with the company (but not because the other entity is an *associate of the company as a result of an investment made in the other entity by the partnership); and
 (ii) meets the requirements of subsections (3) to (7); or
 (b) the other entity:
 (i) is, after the investment is made, controlled by the company in a way described in section 328‑125; and
 (ii) meets the requirements of subsections (2) to (7) of this section (other than subsection (3)).
However, this subsection does not prevent the company from depositing money with an *ADI, or with a body authorised by or under a law of a foreign country to carry on banking business in that country.
Note 1: This requirement is ongoing. It is not limited to the circumstances at the time the investment was made.
Note 2: The other entity can be taken to meet the requirements of subsection (2) if Industry Innovation and Science Australia determines that its activities are complementary to activities of the company or other controlled entities and that the company meets those requirements at the time of the investment: see subsection (14C).

Investment in the capacity of a trustee
 (4A) The company must not, in the capacity of a trustee, use any part of the amount invested.
Note: This requirement is ongoing. It is not limited to the circumstances at the time the investment was made.

Registered auditor
 (5) The company must have as its auditor a *registered auditor at all times (if any) referred to in subsection (5A) during which the company:
 (a) is not a proprietary company within the meaning of the Corporations Act 2001; or
 (b) is a large proprietary company within the meaning of that Act; or
 (c) would exceed the *permitted entity value if the amount provided for under subsection 118‑440(9) were $12.5 million.
Note: This requirement is ongoing.
 (5A) The times are:
 (a) the end of the income year in which the investment is made; and
 (b) all times after the end of that income year.

Permitted entity value
 (6) The company must not, immediately before the investment is made, exceed the *permitted entity value.

Listing
 (7) The company must be a company whose *shares:
 (a) are, at the time the investment is made, not listed for quotation in the official list of a stock exchange in Australia or a foreign country; or
 (b) are so listed at that time, but cease to be so listed at any time during the 12 months after the investment is made.
However, the company is taken to meet the requirements of this subsection in relation to any investment made