Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p27
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 27/58)
Character Range: 2365934–2368613

on *business in Australia;
  as the case requires;
then:
 (c) any eligible venture capital investments already made in the company or unit trust cease to be eligible venture capital investments; and
 (d) any further investments made in the company or unit trust 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 the amount provided for under subsection (9):
 (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).
Note: The time the entity makes the investment is, for a share acquired by converting a convertible note or convertible preference share or for a unit in a unit trust acquired by converting a convertible note, the time when the entity last acquired the convertible note or convertible preference share: see subsections 118‑425(15) and 118‑427(16).
 (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.
 (2A) However, for the purposes of this section, the total value of its assets at that time is the sum of the values of those assets provided for by section 118‑450 if:
 (a) there are no such audited accounts; and
 (b) the entity does not have an auditor at that time; and
 (c) the entity is not required under subsection 118‑425(5) or 118‑427(6) to have an auditor at that time.
 (3) In applying paragraphs (1)(b), (5)(b) and (7)(c), ignore the total value of the assets of an entity that is *connected with the entity first‑mentioned in subsection (1) (the target entity) either immediately before or immediately after the investment referred to in that subsection if it is so connected only because of *eligible venture capital investments made in both of those entities by the same *VCLP, *ESVCLP, *AFOF or *eligible venture capital investor.
 (4) In applying paragraphs (1)(b), (5)(b) and (7)(c), ignore the total value of the assets of an entity that, immediately after the investment is made, is not *connected with