Commonwealth Consolidated Acts

VENTURE CAPITAL ACT 2002 - SECT 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 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).

             (2)  * Innovation 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.

             (3)  This section does not limit the matters that * Innovation 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.