Document ID: chunk:federal_register_of_legislation:C2004A01073:clause:1_6:p8
Version: federal_register_of_legislation:C2004A01073
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 8/10)
Character Range: 24639–27219

a body authorised by or under a law of a foreign country to carry on banking business in that country.

Note: This requirement is ongoing. It is not limited to the circumstances at the time the investment was made.

Registered auditor

 (5) The company must have as its auditor a person registered as a company auditor under a law in force in a State or a Territory.

Note: This requirement is ongoing. It is not limited to the circumstances at the time the investment was made.

Permitted entity value

 (6) The company must not, immediately before the investment is made, exceed the *permitted entity value.

Listing

 (7) The company must be a company whose *shares:
 (a) are, at the time the investment is made, not listed for quotation in the official list of a stock exchange in Australia or a foreign country; or
 (b) are so listed at that time, but cease to be so listed at any time during the 12 months after the investment is made.

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, *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 (including a *convertible note) cannot be an eligible venture capital investment.

The value of an asset

 (10) The value of an asset of an entity for the purposes of paragraph (2)(b) is the value of the asset 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.

118‑430  Meaning of at risk

  An *eligible venture capital investment 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