Document ID: chunk:federal_register_of_legislation:C2010C00601:clause:1_11:p2
Version: federal_register_of_legislation:C2010C00601
Segment Type: clause
Provision Reference: sch 1 cl 11 (pt 2/2)
Character Range: 8848–9896

determines under section 25‑15 of the Venture Capital Act 2002 that:
 (a) the company's primary activity is not an ineligible activity mentioned in subsection (13); and
 (b) the failure is temporary and did not exist at the time the investment referred to in subsection (1) was made and, if it has been disposed of, when it was disposed of.

Convertible notes and convertible preference shares

 (15) To the extent that an investment by an entity consists of the acquisition of a *share in a company by converting a *convertible note, or a convertible preference share, issued by the company, the investment is, for the purpose of determining whether the company meets the requirements of subsections (2) to (7), taken to have been made at the time when the entity last acquired the convertible note or convertible preference share.

Subsection (11) stops applying

 (16) Subsection (11) stops applying to the company first referred to in that subsection if the company becomes the *head company of a *consolidated group or *consolidatable group.