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)

 View history note

SECTION 1105   EFFECT WHERE DOCUMENT PURPORTS TO BEAR TRANSFEROR'S BROKER'S STAMP  

View history reference

1105(1)  [Application]  

This section applies where a document relating to marketable securities or marketable rights:

(a)  is a duly completed Part 1; and

(b)  bears a stamp that purports to be that of the transferor's broker.

1105(2)  [Deemed warrantee of broker]  

Each associate (if any) of the broker (in this section called the ``designated broker'' ) of whom the stamp referred to in paragraph (1)(b) purports to be the stamp and, unless the designated broker is a broker's agent, the designated broker shall be deemed to have warranted:

(a)  that the statements in the document that purport to be certified by the transferor's broker are accurate; and

(b)  that the transferor is:

(i) the registered holder of, or entitled to be registered as the holder of, the securities; or
(ii) is entitled to the rights;

as the case may be, and is legally entitled or authorised to sell or dispose of the securities or rights.

1105(3)  [Broker's liability to indemnify]  

If the document has been duly completed in accordance with Part 1 of Form 1 or 5, then:

(a)  if, when the document was stamped with the stamp referred to in paragraph (1)(b), the designated broker had authority to sell the securities or rights, on the transferor's behalf, to:

(i) the transferee;
(ii) particular persons who include, or particular classes of persons at least one of which includes, the transferee; or
(iii) any person at all;

the designated broker shall be deemed to have been authorised to execute, and to have executed, the document on the transferor's behalf; and

(b)  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:

(i) the issuing body in relation to the securities or rights;
(ii) the transferor;
(iii) the transferee; and
(iv) the transferee's broker;

against any loss or damage arising if:

(v) the stamp referred to in paragraph (1)(b) is not in fact the designated broker's stamp; or
(vi) apart from the effect of paragraph (a) of this subsection, the designated broker was not authorised to execute the document on the transferor's behalf.

 

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