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.