Practical Law ANZ Glossary w-009-9431 (Approx. 3 pages)
Glossary
20 investors ceiling or 20/12 rule
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).