Document ID: chunk:federal_register_of_legislation:C2004A01073:clause:1_6:p9
Version: federal_register_of_legislation:C2004A01073
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 9/10)
Character Range: 27007–29684

is at risk if the entity that owns the investment had no *arrangement as to:
 (a) the maintenance of the value of the shares; or
 (b) the maintenance of any earnings or other return that might be made from owning the shares.

118‑435  Special rule relating to investment in non‑resident holding companies

 (1) A company that meets the requirements of subsections 118‑425(6) and (7) is treated as also meeting the requirements of subsections 118‑425(2), (3), (4) and (5) if:
 (a) it is a resident of:
 (i) Canada; or
 (ii) France; or
 (iii) Germany; or
 (iv) Japan; or
 (v) the United Kingdom; or
 (vi) the United States of America; or
 (vii) any other foreign country prescribed by the regulations; and
 (b) it beneficially owns all the *shares in another company; and
 (c) it does not carry on any *business other than to support the primary activity of the other company; and
 (d) the other company meets the requirements of subsections 118‑425(2) to (7).

 (2) However, if:
 (a) the company is so treated as meeting those requirements; and
 (b) the other company ceases to be an Australian resident at any time within the period of 12 months after the day on which the first *eligible venture capital investment was made in the company;
then:
 (c) any eligible venture capital investments already made in the company cease to be eligible venture capital investments; and
 (d) any further investments made in the company are not eligible venture capital investments.

118‑440  Meaning of permitted entity value

 (1) An entity exceeds the permitted entity value immediately before a proposed investment is made in the entity if, at that time, the sum of the following exceeds $250 million:
 (a) the total value of the entity's assets;
 (b) the total value of the assets of any other entity *connected with the entity to the extent that they are not reflected in the value of any assets referred to in paragraph (a).

 (2) The total value of the assets of an entity is the total value of its assets (both current and non‑current) as shown in:
 (a) the last audited accounts prepared for the entity for the purposes of the Corporations Act 2001 that relates to a period ending less than 18 months before that time; or
 (b) if there are no such audited accounts—a statement, prepared in accordance with the *accounting standards and audited by the entity's auditor, showing that value as at a time no longer than 12 months before that time.

118‑445  Meaning of committed capital

 (1) A partner's committed capital in a partnership is the sum of the amounts that the partner may, under the partnership agreement establishing the partnership, become obliged to contribute to