Venture Capital Act 2002
View history note
Hide history noteA debt interest is a permitted loan if: (a) it is a loan made to a *company and the sum of:
(i) the *equity interests that the partnership owns in the company; and
is at least 10% of the sum of:
(ii) any debt interests that the partnership owns in the company that can be converted into equity interests in the company;
(iii) all of the equity interests in the company; and
and the company meets the requirements of subsections 118-425(2) to (7) of the Income Tax Assessment Act 1997 in relation to the investments referred to in subparagraphs (i) and (ii) ; or (aa) it is a loan made to a unit trust and the sum of:
(iv) all of the debt interests in the company that can be converted into equity interests in the company;
(i) the *equity interests that the partnership owns in the unit trust; and
is at least 10% of the sum of:
(ii) any *debt interests that the partnership owns in the unit trust that can be converted into equity interests in the unit trust;
(iii) all of the equity interests in the unit trust; and
and the unit trust meets the requirements of subsections 118-427(3) to (8) of the Income Tax Assessment Act 1997 in relation to the investments referred to in subparagraphs (i) and (ii) ; or (b) it is repaid within 6 months, or such longer period as *Industry Innovation and Science Australia allows under subsection (3) .
(iv) all of the debt interests in the unit trust that can be converted into equity interests in the unit trust;
9-10(2)
A *general partner may apply to *Industry Innovation and Science Australia, in the *form approved by Industry Innovation and Science Australia, for Industry Innovation and Science Australia to allow a longer period for the purposes of paragraph (1)(b) .
9-10(3)
*Industry Innovation and Science Australia may, for the purposes of paragraph (1)(b) , allow a longer period if Industry Innovation and Science Australia is satisfied that: (a) there are exceptional circumstances; and (b) the extended period is no longer than reasonably necessary.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
