Document ID: chunk:federal_register_of_legislation:F2025L00219:reg:6
Version: federal_register_of_legislation:F2025L00219
Segment Type: reg
Provision Reference: reg 6
Character Range: 1766–3442

6  Excluded asset — capital transfer by genuine investor

        (1) This section applies if an individual (the investor), who is not an attributable stakeholder of a company, makes a genuine transfer of capital to the company for shares in the company.
        1.     This section also applies if an individual (the investor), who is not an attributable stakeholder of a trust, makes a genuine transfer of capital to the trust for units in the trust.
(3) For subsections (1) and (2), a transfer of capital is a genuine transfer of capital if:
          (a) the investor is over 18 years; and
          (b) the investor receives, as consideration for the transfer, shares in the company, or units in the trust, of a value that is equivalent to the value of the capital transferred; and
          (c) the investor has a legal or equitable right to a share of the capital on the winding-up of the company or trust; and
          (d) the investor has a legal or equitable right to receive dividends or distributions under the constituent documents of the company or the terms of the trust.
        1.     The Commission must consider the extent to which capital transferred in accordance with subsection (3) should be determined to be an excluded asset in relation to an attributable stakeholder of the company or trust, having regard to:
          (a) the value of the capital transferred to the company or trust; and
          (b) the value of shares or units received by the investor; and
          (c) the extent, if any, to which the value of the capital would not be required to be disregarded by any express provision of the Act.

Part 3 Excluded charge or encumbrance