VENTURE CAPITAL ACT 2002

PART 2 - REGISTRATION OF LIMITED PARTNERSHIPS  

Division 9 - Registration requirements  

SECTION 9-5   REGISTRATION REQUIREMENTS OF AFOFs  

9-5(1)  
The registration requirements of an AFOF , in relation to a *limited partnership, are that:


(a) the partnership is established by or under the law of a State or Territory; and


(b) all of the partners who are *general partners are *Australian residents; and


(c) under the partnership agreement, the partnership is to remain in existence for a period of not less than 5 years and not more than 20 years; and


(d) each investment that the partnership owns is:


(i) an investment in a *VCLP or an *ESVCLP; or

(ii) an *eligible venture capital investment in a company or unit trust in which a VCLP or an ESVCLP, of which the partnership is a partner, owns one or more eligible venture capital investments; or

(iii) an investment in a company referred to in subparagraph (ii) that would have been an eligible venture capital investment but for subsections 118-425(2) and (6) of the Income Tax Assessment Act 1997 ; or

(iv) an investment in a unit trust referred to in subparagraph (ii) that would have been an eligible venture capital investment but for subsections 118-427(3) and (7) of the Income Tax Assessment Act 1997 ; and


(e) the partnership only carries on activities that are related to making eligible venture capital investments, investments to which subparagraph (d)(iii) applies or investments to which subparagraph (d)(iv) applies, or investing in VCLPs or ESVCLPs; and


(f) every *debt interest that the partnership owns is, and continues to be, a *permitted loan.

9-5(2)  
The requirements in paragraphs (1)(d), (e) and (f) are investment registration requirements .




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