Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p15
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 15/58)
Character Range: 2336397–2339008

listed at that time, but cease to be so listed at any time during the 12 months after the investment is made.
However, the company is taken to meet the requirements of this subsection in relation to any investment made by an *ESVCLP (whether or not shares in the company are so listed).
Note: The additional requirements for ESVCLPs deal with listing in relation to initial investments by ESVCLPs in companies: see paragraph 118‑428(1)(a).

Scrip for scrip investments
 (8) However, a company is taken to meet the requirements of subsections (2) to (7) if:
 (a) the investment is an acquisition of *shares in that company in exchange for shares in another company; and
 (b) at the time that the *VCLP, *ESVCLP, *AFOF or *eligible venture capital investor in question acquired the shares being exchanged, the other company meets the requirements of subsections (2) to (7), but not only because this subsection applies to the other company; and
 (c) the shares in the other company that are being exchanged are all of the shares in the other company that the entity making the investment owned at the time of the exchange.

Debt interests
 (9) To avoid doubt, a *debt interest cannot be an eligible venture capital investment.

The value of an asset or investment
 (10) The value of an asset, or an investment, of an entity at a particular time for the purposes of this section is the value of the asset or investment 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.
 (10A) However, for the purposes of this section, the value of the asset or investment at that time is the value 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 (5) of this section to have an auditor at that time.

Application to consolidated or consolidatable groups
 (12) This section applies to a *consolidated group or *consolidatable group as if:
 (a) the *head company of the group carried on all of the activities that are carried on by *subsidiary members of the group; and
 (b) the assets, employees and income of the subsidiary members of the group were assets, employees and income of the head company; and
 (c) each subsidiary member