Document ID: chunk:federal_register_of_legislation:F2009B00251:body:0:p10
Version: federal_register_of_legislation:F2009B00251
Segment Type: other
Provision Reference: 
Character Range: 26947–29927

by a licensed fund was made in an amount or at a time for the primary purpose of qualifying that company as an eligible company or that project as an eligible project.

Eligible investments

         30 The Board must make provision in the PSF guidelines, licence agreement or other documents relating to a licensed fund requiring that the fund invest only in eligible investments.

                  PART 6 - OPERATION OF LICENSED FUNDS

Excluded companies and projects

         31 The Board must make provision in the PSF guidelines, licence agreement or other documents relating to a licensed fund to prohibit a licensed fund from investing in or otherwise funding overseas companies or projects or funding overseas expenditure on companies or projects unless the Board otherwise agrees. The Board must also make provision in the PSF guidelines to exclude investments in companies or projects which are carrying out R &D activities within or derived from ineligible institutions.

         32 The Board must make provision in the PSF guidelines, licence agreement or other document relating to a licensed fund requiring that the fund not, without the prior approval of the Board, invest in an eligible company or an eligible project which:

             (a)                involves associates of the fund manager;

             (b)               involves associates of any person (other than an eligible institution) who provides over 10% of the privately sourced capital to the fund;

             (c)                is controlled by a person providing privately sourced capital to the fund; or

             (d)               the Board otherwise considers inappropriate.

         33 The Board may make provision in the PSF guidelines, licence agreement or other documents relating to a licensed fund to exclude companies and projects from qualifying as eligible companies and eligible projects, respectively.  The Board may make those exclusions on any generally applicable basis.

Determination of eligible companies and projects

         34 Investment decisions are to be made by fund managers, but they may in any particular case request the Board to determine whether an institution is an eligible institution, whether a company is an eligible company or whether a project is an eligible project and, subject to clauses 35 and 36, the Board must make that determination.

         35 The Board is not limited in conditioning or qualifying a determination of whether or not an institution which is an eligible institution, a company is an eligible company  or a project is an eligible project.

         36 The Board may levy fees that do not exceed the costs incurred by it and AusIndustry in making a determination under 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