THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.13 - TITLE TO, AND TRANSFER OF, SECURITIES

Division 3 - Transfer of marketable securities and marketable rights

Subdivision B - Sufficient transfers (transfers other than SCH-regulated transfers)

SECTION 1107   INDEMNITIES BY SECURITIES EXCHANGE AND BROKER WHERE DOCUMENTS PURPORT TO BEAR THEIR STAMPS  

1107(1)  [Application]  

This section applies where:

(a)  a document (in this section called the ``first document'' ) relating to marketable securities or marketable rights:

(i) has been duly completed in accordance with Part 1 of Form 1 or 5; and

(ii) bears a stamp that purports to be that of the transferor's broker; and

(b)  another document:

(i) relates to any or all of the securities or rights;

(ii) has been duly completed in accordance with Part 1 of Form 3 or 7; and

(iii) bears a stamp that purports to be that of a particular securities exchange.

1107(2)  [Liability to indemnify - securities exchange]  

The securities exchange is liable to indemnify:

(a)  the issuing body in relation to the securities or rights;

(b)  the transferor in relation to the other document;

(c)  the transferee in relation to the other document; and

(d)  the broker of the transferee in relation to the other document;

against any loss or damage arising if:

(e)  the stamp referred to in subparagraph (1)(a)(ii) is not in fact the stamp of the broker (in this section called the ``designated broker'' ) of whom it purports to be the stamp; or

(f)  apart from the effect of paragraph 1105(3)(a), the designated broker was not authorised to execute the first document on behalf of the transferor in relation to the first document.

1107(3)  [Liability to indemnify - broker]  

Each associate (if any) of the designated broker and, unless the designated broker is a broker's agent, the designated broker is or are, as the case requires, liable to indemnify the securities exchange against any loss or damage arising as mentioned in subsection (2).

1107(4)  [Operation]  

Nothing in this section limits the operation of anything in section 1105 or 1106 or of anything else in this section.