Document ID: chunk:federal_register_of_legislation:C2007A00078:clause:8_119:p2
Version: federal_register_of_legislation:C2007A00078
Segment Type: clause
Provision Reference: sch 8 cl 119 (pt 2/2)
Character Range: 71303–73593

if, at that time, the partnership's registration as an early stage venture capital limited partnership under Part 2 of the Venture Capital Act 2002 is, or is taken to have been, in force.

Note 1: For when the registration is, or is taken to have been, in force, see section 13‑10 of the Venture Capital Act 2002.

Note 2: In this Act and the Venture Capital Act 2002, the term "early stage venture capital limited partnership" is usually abbreviated to "ESVCLP".

Temporary exemption from meeting the divestiture registration requirement

 (5) A partnership is treated, for the purposes of subsection (1), as never having failed, during a particular income year of the partnership, to meet the *divestiture registration requirement in relation to a particular investment that the partnership holds, if:
 (a) at the start of the income year, the partnership fails to meet the divestiture registration requirement in relation to that investment; and
 (b) the partnership meets the divestiture registration requirement in relation to that investment:
 (i) within the period of 6 months after the start of that income year; or
 (ii) if that period is extended under subsection 17‑3(3) of the Venture Capital Act 2002—within that period as so extended.

Effect of converting convertible notes etc.

 (6) A partnership that acquired a *share in a company by converting a *convertible note, or a convertible preference share, issued by the company is treated, for the purposes of subparagraph (1)(d)(ii), as having owned the share from the time when it last acquired the convertible note or convertible preference share.

 (7) A partnership that acquired a unit in a unit trust by converting a *convertible note issued by the trustee of the unit trust is treated, for the purposes of subparagraph (1)(d)(ii), as having owned the unit from the time when it last acquired the convertible note.

 (8) Subsection (6) or (7) applies whether or not the acquisition of the *convertible note, or convertible preference share, was an *eligible venture capital investment.

 (9) A partnership that converts a *convertible note into a share or a unit is treated, for the purposes of subparagraph (1)(d)(ii), as continuing to own the convertible note until the partnership no longer owns the share or unit.