Document ID: chunk:federal_register_of_legislation:F2013C00808:body:0:p7
Version: federal_register_of_legislation:F2013C00808
Segment Type: other
Provision Reference: 
Character Range: 16359–19332

year is not in excess of $5 million.  The calculation of revenue for a year of income must exclude any abnormal items; and

         (g) at the time when the fund first invests in or provides finance to the company, it is not related (within the meaning of section 50 of the Corporations Law) to a company (other than a qualifying enterprise) which has an average annual revenue, over the previous 2 years of income, in excess of $4 million per year.

         27. Factors indicating that a company is in the seed stage of development include:

         (a) that the initial concept of its business is being formed;

         (b) prototypes or concepts of the company's products or services are being developed;

         (c) the management team is beginning to form; and

         (d) any other matters the Board thinks fit.

         28. Factors indicating that a company is in the start-up stage of development include:

         (a) that the funds are necessary for product development, staffing, initial marketing and other start-up costs;

         (b) the management team is substantially in place;

         (c) the company is setting itself up to sell its product or service commercially; and

         (d) any other matters the Board thinks fit.

         29. Factors indicating that a company is in the early expansion stage of development include:

         (a) that the funding is necessary to working capital to help launch the manufacture and    sale of the company's  products or services.  Typically, the company is not profitable and frequently will be cash-flow negative; and

         (b) any other matters the Board thinks fit.

         Excluded companies

         30. The Board must make provision in the IIF guidelines, licensing agreement or other contractual documents relating to an IIF licensed fund to exclude companies that conduct the following business from being an eligible investee company:

         (a) re-lending or re-investing;

         (b) passive businesses;

         (c) real estate businesses;

         (d) farm purchases; or

         (e) mining operations.

         31. The Board must make provision in the IIF guidelines, licence agreement or other contractual document relating to an IIF licensed fund to require that the fund not, without prior approval of the Board, invest in or provide finance to companies that:

         (a) are related (within the meaning of section 50 of the Corporations Law) to the fund manager;

         (b) are related (within the meaning of section 50 of the Corporations Law) to any entity which provides over 10 percent of the privately sourced capital to the fund;

         (c) are controlled (within the meaning of section 294B of the Corporations Law) by an entity providing privately sourced capital to the fund;

            (d) have a director who is or has been an associate of the fund manager; or

         (e) have any other relationship with the fund that the Board considers