Venture Capital Act 2002

PART 2 - REGISTRATION OF LIMITED PARTNERSHIPS  

Division 9 - Registration requirements  

SECTION 9-3   REGISTRATION REQUIREMENTS OF ESVCLPs  

9-3(1)    

The registration requirements of an ESVCLP , in relation to a *limited partnership, are that:

(a)    the partnership was established by or under a law in force in, or in any part of:

(i) Australia; or

(ii) a foreign country in respect of which a double tax agreement (as defined in Part X of the Income Tax Assessment Act 1936 ) is in force that is an agreement of a kind referred to in subparagraph (b)(i) , (ia) , (ii) , (iii) , (iv) or (v) of that definition; and

(b)    all of the partners who are *general partners are residents of a country referred to in paragraph (a) ; 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 15 years; and

(d)    

the partnership ' s *committed capital:

(i) is at least $10 million; and

(ii) does not exceed $200 million; and

(e)    none of the partners has *committed capital in the partnership that, taken together with the sum of the amounts of committed capital in the partnership of any of that partner ' s *associates (other than associates to whom subsection (5) applies), exceeds 30% of the partnership ' s committed capital; and

(f)    each investment that the partnership holds is:

(i) an *eligible venture capital investment; or

(ii) an investment in a company, in which the partnership owns one or more eligible venture capital investments, 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

(iii) an investment in a unit trust, in which the partnership owns one or more eligible venture capital investments, 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

(g)    each investment that the partnership holds is in accordance with the partnership ' s *approved investment plan; and

(h)    the partnership acts in accordance with the partnership ' s approved investment plan; and

(i) (Repealed by No 54 of 2016)

(j)    the partnership only carries on activities that are related to making eligible venture capital investments, investments to which subparagraph (f)(ii) applies or investments to which subparagraph (f)(iii) applies; and

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

9-3(2)    
The requirements in paragraphs (1)(e) , (f) , (g) , (h) , (j) and (k) are investment registration requirements .

9-3(3)    
(Repealed by No 54 of 2016)

9-3(4)    

Paragraph (1)(e) does not apply in relation to a particular partner ' s *committed capital in the partnership if:

(a)    

*Industry Innovation and Science Australia allows, under section 9-4 , the partner ' s committed capital in the partnership to exceed 30% of the partnership ' s committed capital; or

(b)    subsection (5) applies to the partner.

9-3(5)    
This subsection applies to:

(a)    an *ADI; or

(b)    a *life insurance company; or

(c)    a public authority:

(i) that is constituted by a law of a State or internal Territory; and

(ii) that carries on life insurance business within the meaning of section 11 of the Life Insurance Act 1995 ; or

(d)    a widely-held complying superannuation fund within the meaning of section 4A of the Pooled Development Funds Act 1992 ; or

(e)    

a *widely held foreign venture capital fund of funds.

9-3(6)    
(Repealed by No 54 of 2016)