VENTURE CAPITAL ACT 2002

PART 2 - REGISTRATION OF LIMITED PARTNERSHIPS  

Division 13 - Registration  

SECTION 13-20   DECIDING WHETHER INVESTMENT PLANS ARE APPROPRIATE  

13-20(1)  

In deciding, for the purposes of paragraph 13-1(1A)(c) or subsection 13-15(5) , whether it is satisfied that a partnership ' s investment plan, or a replacement for a partnership ' s *approved investment plan, is appropriate, *Innovation and Science Australia must take into account the extent to which the partnership focuses on early stage venture capital, having regard to:

(a) the stages of development of the entities in which the partnership proposes to invest; and

(b) the levels of cash flow of those entities; and

(c) the levels of technology of those entities; and

(d) the proportions of intellectual property to total assets of those entities; and

(e) the levels of risk and return of those entities; and

(f) the amount of tangible assets and collateral of those entities against which borrowings may be secured; and

(g) the requirements of this Act relating to an *ESVCLP making and holding investments; and

(h) whether the partnership ' s *committed capital can only be used in relation to early stage venture capital, and whether it can be transferred to other entities; and

(i) whether the investment plan is connected with other plans for investment that, if combined with the investment plan, would lead to the partnership exceeding the limit on *committed capital under subparagraph 9-3(1)(d)(ii) ; and

(j) any additional matters specified in guidelines made under subsection (2).

13-20(2)  

*Innovation and Science Australia may, by legislative instrument, make guidelines specifying additional matters that it must take into account in deciding, for the purposes of paragraph 13-1(1A)(c) or subsection 13-15(5) , whether it is satisfied that:

(a) a partnership ' s investment plan is appropriate; or

(b) a replacement for a partnership ' s *approved investment plan is appropriate;

as the case requires.

13-20(3)  

This section does not limit the matters that *Innovation and Science Australia may take into account in deciding, for the purposes of paragraph 13-1(1A)(c) or subsection 13-15(5) , whether it is satisfied that:

(a) a partnership ' s investment plan is appropriate; or

(b) a replacement for a partnership ' s *approved investment plan is appropriate;

as the case requires.