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 C - SCH-regulated transfers

SECTION 1109E   WARRANTIES BY MEMBER ORGANISATION WHOSE IDENTIFICATION CODE IS INCLUDED IN TRANSFER DOCUMENT  

1109E(1)  [Identification code]  

This section applies if the transfer document for a proper SCH transfer of quoted securities or quoted rights includes a member organisation's identification code as the identification code of the member organisation effecting the transfer.

1109E(2)  [Member organisation as transferor]  

If the member organisation is the transferor, the member organisation or, if it is a partnership, each of the partners in the member organisation, is taken to have warranted that:

(a)  the transfer was effected by the member organisation; and

(b)  the transferor was legally entitled or authorised to transfer the securities or rights.

1109E(3)  [Member organisation not transferor and on-market transfer]  

If:

(a)  the member organisation is not the transferor; and

(b)  the transfer is pursuant to a transaction in relation to which, or to transactions in relation to each of which, one of the following conditions is satisfied:

(i) the transaction was entered into in the ordinary course of trading on a stock market;

(ii) the transaction is, under the business rules or listing rules of a stock exchange, described, or to be described, as ``special'' when it is reported to the stock exchange;

the member organisation or, if it is a partnership, each of the partners in the member organisation, is taken to have warranted that:

(c)  the transferor was legally entitled or authorised to transfer the securities or rights; and

(d)  the transfer was effected by the member organisation; and

(e)  the member organisation was authorised by the transferor to effect the transfer.

1109E(4)  [Member organisation not transferor and off-market transfer]  

If:

(a)  the member organisation is not the transferor; and

(b)  subsection (3) does not apply;

the member organisation or, if it is a partnership, each of the partners in the member organisation, is taken to have warranted that:

(c)  the transfer was effected by the member organisation; and

(d)  the member organisation was authorised by the transferor to effect the transfer.