Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW- SECT 1105

(1)

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.

(2)

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.

(3)

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.