Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p24
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 24/58)
Character Range: 2358598–2361271

of this section; and
 (c) in all the circumstances, it is appropriate that, for a period specified in the determination, the activities of the controlled entity are disregarded when applying subsection (4) of this section to the unit trust;
in applying subsection (4) of this section to the unit trust, disregard, for the period specified in the determination, the activities of the controlled entity.

Other entity can be taken to meet requirements relating to location in Australia
 (15B) In applying subsection (5) to a unit trust in relation to its investment in another entity, the other entity is taken, for the purposes of subparagraph (5)(b)(ii), to meet the requirements of subsection (3) 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 unit trust or its other controlled entities; and
 (b) the unit trust meets the requirements of subsection (3) 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
 (16) To the extent that an investment by an entity consists of the acquisition of a unit in a unit trust by converting a *convertible note issued by or on behalf of the trustee of the unit trust, the investment is, for the purpose of determining whether the unit trust meets the requirements of subsections (3) to (8), taken to have been made at the time when the entity last acquired the convertible note.
 (17) Subsection (16) applies whether or not the acquisition of the *convertible note was an *eligible venture capital investment.

118‑428  Additional investment requirements for ESVCLPs
 (1) The additional investment requirements for ESVCLPs, for an investment in a company or in a unit trust, are:
 (a) if the entity making the investment does not, when the investment is made, own any other investment in the company or unit trust:
 (i) *shares in the company; or
 (ii) units in the unit trust;
  are not, when the investment is made, listed for quotation in the official list of a stock exchange in Australia or a foreign country; and
 (b) if the investment is *pre‑owned when the investment is made:
 (i) the entity already owns investments in the company or unit trust; or
 (ii) the entity will, in connection with making the investment, make other investments in the company or unit trust, some or all of which are not pre‑owned; and
 (c) if the investment is pre‑owned when the investment is made—the sum of:
 (i) the value of the investment when the entity makes it; and
 (ii) the