Document ID: chunk:federal_register_of_legislation:C2004A01073:clause:1_6:p7
Version: federal_register_of_legislation:C2004A01073
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 7/10)
Character Range: 22094–24866

in all the equity interests and debt interests that the partnership owns in any entities that are *connected entities of the company;
  does not exceed 30% of the partnership's *committed capital.

Location within Australia

 (2) The company:
 (a) must, at the time the investment is made, be an Australian resident; and
 (b) if at that time the entity making the investment does not own any other investments in the company—must meet the following requirements:
 (i) more than 50% of the people who are currently engaged by the company to perform services must perform those services primarily in Australia;
 (ii) more than 50% of its assets (determined by value) must be situated in Australia;
  during the whole of the period of 12 months, or such shorter period as the *PDF Board determines under section 25‑5 of the Venture Capital Act 2002, starting from the time the investment is made.
However, subparagraph (b)(i) or (ii) does not apply to the company if the PDF Board so determines under section 25‑10 of the Venture Capital Act 2002.

See subsection (10) for the value of assets.

Primary activity

 (3) The company must not have as its primary activity any of the following:
 (a) property development or land ownership;
 (b) finance, to the extent that it is any of the following:
 (i) banking;
 (ii) providing capital to others;
 (iii) leasing;
 (iv) factoring;
 (v) securitisation;
 (c) insurance;
 (d) construction (including extension, improvement or up‑grading) or acquisition of infrastructure facilities (within the meaning of section 93L of the Development Allowance Authority Act 1992) or related activities (within the meaning of section 93M of that Act), or both;
 (e) making investments, whether made directly or indirectly, that are directed to deriving income in the nature of interest, rents, dividends, royalties or lease payments.
For the purposes of this subsection, activities that are ancillary or incidental to a particular activity are taken to form part of that activity.

Note: This requirement is ongoing. It is not limited to the circumstances at the time the investment was made.

Investment in other entities etc.

 (4) The company must not:
 (a) invest, in another entity, any part of the amount invested, unless the other entity:
 (i) is *connected with the company; and
 (ii) meets the requirements of subsections (3) to (7); or
 (b) in the capacity of a trustee, use any part of the amount invested.
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: This requirement is ongoing. It is not limited to the circumstances at the time the investment was made.

Registered