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 D - Miscellaneous

SECTION 1112   OFFENCES: STAMPING OF BROKER'S STAMP ON SUFFICIENT TRANSFER  

1112(1)  [Broker]  

A broker must not, in this jurisdiction or elsewhere, stamp with a broker's stamp a document that relates to marketable securities or marketable rights and may be used as a sufficient transfer under this Division unless the document relates to a sale or purchase of the securities or rights, in the ordinary course of the broker's business, for a consideration of not less than their unencumbered market value at the time of the sale or purchase.

1112(2)  [Transferor]  

A person must not, in this jurisdiction or elsewhere, stamp with a stamp that purports to be that of the transferor's broker a document that relates to marketable securities or marketable rights and may be used as a sufficient transfer under this Division unless:

(a)  the stamp is in fact that of the transferor's broker;

(b)  apart from the effect of paragraph 1105(3)(a), the transferor's broker is authorised to execute the document on the transferor's behalf; and

(c)  the person is the transferor's broker or is authorised so to stamp the document on the transferor's broker's behalf.

1112(3)  [Securities exchange]  

A securities exchange must not, in this jurisdiction or elsewhere, stamp with a stamp of the securities exchange a document that may be used as a sufficient transfer under this Division of marketable securities or marketable rights, unless:

(a)  there has been lodged; or

(b)  the securities exchange holds a duly completed Part 1 bearing a certificate that purports to be that of the transferor's broker and states that there has been or will be lodged;

with the issuing body in relation to the securities or rights a duly completed Part 1 relating to the securities or rights.

1112(4)  [Execution of instrument]  

A person must not, in this jurisdiction or elsewhere, execute a document that may be used as a sufficient transfer under section 1102 and relates to a transfer of marketable securities or of marketable rights:

(a)  made by way of a sale, gift or exchange of the securities or rights; or

(b)  to or in favour of a person who is not the beneficial owner of the securities or rights.

1112(5)  [Party to execution of instrument]  

A person other than an authorised trustee corporation must not, in this jurisdiction or elsewhere, knowingly cause, authorise or permit to be executed a document that relates to marketable securities or marketable rights and may be used as a sufficient transfer under section 1102 but is not in fact a sufficient transfer under that section.

1112(6)  [Lodgement of contravening instrument]  

A person must not, in this jurisdiction or elsewhere, knowingly lodge or cause to be lodged with an eligible body a document that has been stamped in contravention of subsection (1), (2) or (3), or that has been executed in contravention of subsection (4), for the purpose of securing the registration of the transfer of, or the allotment or issue of, marketable securities to the transferee named in the document.