Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW- SECT 1107

(1)

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.

(2)

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.

(3)

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).

(4)

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