Document ID: chunk:federal_register_of_legislation:F2009B00251:body:0:p11
Version: federal_register_of_legislation:F2009B00251
Segment Type: other
Provision Reference: 
Character Range: 29696–32726

clause 34.  The Board may refuse to consider a request or to make or notify a determination under clause 34 until those fees are paid.

Control of eligible companies and projects by a licensed fund

         37 The Board may make provision in the PSF guidelines, licence agreement or other contractual documents relating to a licensed fund to limit the level of control exerted by the licensed fund or its manager over the conduct of an eligible company or an eligible project.  In doing so the Board must consider:

             (a)                the ability of the fund to realise a return from an investment in companies and projects at the pre-seed stage;

             (b)               the ability of the fund to protect its investment in companies and projects at the pre-seed stage;

             (c)                the role of the fund manager in providing advice, guidance and influence to seed companies, and those conducting projects at the pre-seed stage; and

             (d)               any other matters the Board thinks fit.

    Operation of licensed funds

         38 The Board must include requirements to the following effect in the PSF guidelines, licence agreement or other documents relating to a licensed fund:

             (a)                the ratio of Commonwealth program capital to privately sourced capital contributed to a licensed fund must not exceed 3:1;

             (b)               a licensed fund must, unless the Board otherwise agrees,  be a unit trust.  Whatever structure is adopted, neither the Commonwealth nor the Board endorses or warrants, or is to be taken as endorsing or warranting, any legal financial taxation or other consequence of that structure under any Commonwealth State or Territory law, whether at the time the structure is adopted or at any later time.  The fund manager is solely responsible for satisfying itself in respect of the structure and should obtain all independent advice necessary for that purpose;

             (c)                a licensed fund must not admit as an investor, or otherwise receive moneys for investment from, a pooled development fund.  A fund manager cannot be a pooled development fund and the fund itself cannot be a pooled development fund;

             (d)               a licensed fund must not raise monies in the form of debt, or equity with features materially consistent with debt, with the exception of leasing equipment or short term debt for the purpose of maintaining the short term liquidity of the licensed fund, without the consent of the Board;

             (e)                a licensed fund must source at least 30% of its privately sourced capital from entities not associated with the fund manager.  The Board may require a licensed fund to have a diversity of persons providing the private capital;

             (f)                a licensed fund must provide funding to eligible companies and eligible projects by taking up the appropriate form of economic interest.

             (g)