Practical Law ANZ Glossary w-009-9431(Approx. 3 pages)
Glossary
The cap on the number of people to whom securities or certain financial products may be issued or sold for the purposes of determining whether an offer is a small scale offering that does not require disclosure under sections 708 (in the case of securities) or 1012E (in the case of financial products) of the Corporations Act 2001 (Cth) (CA 2001). An offer by a body to issue securities results in a breach of the 20 investors ceiling or 20/12 rule if it results in the number of people to whom securities of the body have been issued or sold exceeding 20 in any 12-month period (sections 708(3) and 708(4) and sections 1012E(6) and 1012E(7), CA 2001).
For more information about disclosure requirements for offers of equity securities under the CA 2001, see Practice note: overview, Equity fundraising: disclosure requirements. For more information about dislosure requirements in relation to the issue of financial products in the context of managed investment schemes, see Practice note, Regulation of managed investment schemes under the Corporations Act 2001 (Cth).
