Marketable Securities Act 1967 (NSW)

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MARKETABLE SECURITIES ACT.

ANNO SEXTO DECIMO

E L I Z A B E T H E II R E G I N E

Act No. 30, 1967.

An Act to make provisions relating to instruments of transfer of certain marketable securities; to amend the Companies Act, 1961, and certain other Acts; and for purposes connected therewith. [Assented to, 30th March, 1967.]

BE it enacted by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Council and Legislative Assembly of New South Wales in

Parliament assembled, and by the authority of the same, as follows : —

1 . (1 ) This Act may be cited as the "Marketable Securities Act, 1967".

( 2 )

(2 ) This Act shall commence upon a day to be appointed by the Governor and notified by proclamation pub­ lished in the Gazette.

(3 ) This Act shall be read and construed with, and shall be taken to be part of, the Companies Act, 1961, as amended by subsequent Acts.

2 .      In this Act, unless inconsistent with the context or

subject-matter,—

"Broker" means any person who is a dealer as defined in subsection one of section 97A of the Stamp Duties Act, 1920, as amended by subsequent Acts.

"Debenture" includes debenture stock, bonds, notes and any other securities of a company or proclaimed corporation, whether constituting a charge on the assets of the company or proclaimed corporation or not.

"Marketable security" means—

(a)

any share, stock or debenture of a company or proclaimed corporation; and

(b)

any prescribed interest or security or prescribed class of interests or securities issued by a company or proclaimed corpora­ tion.

"Legal representative" means the executor, original or

by representation, or administrator of the estate of a "Proclaimed corporation" means a body corporate that is declared by proclamation to be a proclaimed corporation, or that is one of a class of corporations that is declared to be a class of proclaimed corpora­ tions, for the purposes of this Act. deceased holder of marketable securities.

"Prescribed instrument" means an instrument of a kind

referred to in section three of this Act.

"Transferee",

"Transferee", in relation to a prescribed instrument renouncing and transferring rights in respect of marketable securities, means the person in whose favour the rights are renounced and transferred.

"Transferor", in relation to a prescribed instrument renouncing and transferring rights in respect of marketable securities, means the person by whom the rights are renounced and transferred.

3.      A duly completed instrument—•

(a) in or to the effect of Form A, or Part 1 of Form A and Form B, in the First Schedule to this Act, trans­ ferring marketable securities, is for all purposes, whether at law or in equity, a proper instrument of transfer of those marketable securities; or
(b) in or to the effect of Form A, or Part 1 of Form A and Form B, in the Third Schedule to this Act, renouncing rights in respect of marketable securi­ ties in favour of the transferee named in the instru­ ment, is for all purposes, whether at law or in equity, a proper instrument of renunciation and transfer of those rights in favour of that transferee,

if the instrument bears the stamp of a broker acting for the transferor on the sale of the marketable securities or rights and it is deemed to have been executed by the transferee in accordance with the provisions of subsection one of section five of this Act, and—

(c)

in the case of marketable securities on which there is an uncalled liability, the instrument is endorsed with or accompanied by a duly completed instru­ ment in or to the effect of the form in the Second Schedule to this Act ; or

(d)

in the case of rights in respect of marketable securi­ ties where the whole of the moneys to be subscribed for the marketable securities is not payable in full on application being made for the marketable

securities,

securities, the instrument is endorsed with or accom­ panied by a duly completed instrument in or to the effect of the form in the Fourth Schedule to this Act.

It shall not be necessary in any instrument of transfer of marketable securities or of renunciation and transfer of rights in respect of marketable securities, that is a prescribed instrument, to state the occupations of the transferee and transferor or to have the signatures of the transferee and transferor witnessed.

4.

5. (1) A prescribed instrument shall be deemed to have

been duly executed by the transferee named therein if i t—

(a) states the full name and address of the transferee; and
(b) bears a stamp which is or purports to be the stamp of the transferee's broker.

(2) Upon the affixing to a prescribed instrument of a stamp which is or purports to be the stamp of the trans­ feree's broker—

(a)

in the case where the prescribed instrument relates to marketable securities on which there is no uncalled liability, the transferee shall be deemed to have agreed to accept the marketable securities sub­ ject to the several terms and conditions on which the transferor held them at the time of the sale; or

(b) in the case where the prescribed instrument relates

to rights in respect of marketable securities and the whole of the moneys to be subscribed for the marketable securities is payable in full on applica­ tion being made for the marketable securities, the transferee shall be deemed to have made application to the company or proclaimed corporation for the allotment to him of the marketable securities to which the rights relate and to have agreed to accept those marketable securities subject to the terms and

conditions

conditions upon which those marketable securities were offered by the company or proclaimed corporation for subscription,

and in either such case, where the instrument is in favour of a person who, on his name being entered in the register of members of the company or proclaimed corporation that issued the securities or the securities to which the rights relate, becomes a member of that company or proclaimed corporation, the transferee shall, upon the affixing of the stamp of the transferee's broker, be deemed also to have agreed to become a member of that company or proclaimed corpora­ tion and to be bound by the memorandum and articles of association or by the constitution of that company or proclaimed corporation.

(3 ) Nothing in subsection two of this section affects the terms upon which any marketable securities or rights in respect of marketable securities are sold.

6. A transferor's broker whose stamp is affixed to a prescribed instrument shall be deemed to have certified to the matters provided in the certificate of the transferor's broker set out in the prescribed instrument and to have warranted that the transferor is the registered holder of or is entitled to be registered as the holder of the marketable security or the right in respect of the marketable security in question and is legally entitled or authorised to sell or dispose of it, and that warranty operates as an indemnity by the transferor's broker

indemnifying—

(a)

the company or proclaimed corporation which has issued or proposes to issue the marketable security which is the subject of the prescribed instrument;

(b ) the transferee; and
(c) the transferee's broker,

against any loss or damage arising from any forged 01 unauthorised signature of the transferor appearing in the instrument.

7. Where a prescribed instrument is lodged with a company or a proclaimed corporation for the purpose of registering a transfer of a marketable security or of allotting any marketable security to a person in whose favour any right to the marketable security has been renounced and transferred, the company or proclaimed corporation and any officer

thereof, in the absence of knowledge to the contrary, is entitled

to assume without inquiry that the stamps affixed thereto and purporting to be the stamps of the transferee's broker and the transferor's broker are the stamps of the transferee's broker and the transferor's broker, respectively and where a stamp purports to be that of the transferor's broker to have the benefit of the indemnity referred to in section six of this Act.

(1) This Act, so far as it is applicable, shall apply and have effect in relation to the transfer of a marketable security and to the renunciation and transfer of a right in respect of a marketable security notwithstanding anything to the contrary in any other enactment or in any instrument relating to the transfer of such security or the renunciation and transfer of such right, but nothing in this Act affects any right to refuse to acknowledge or register a person as the holder of any marketable security on any ground other than the form in which the marketable security purports to be transferred to him.

8.

( 2 ) This Act operates without prejudice and in

addition to any other form of transfer of marketable securities or form of renunciation and transfer of rights in respect of

marketable securities, as the case may be, or mode of execu­
tion of an instrument of transfer of marketable securities or

mode of execution of an instrument of renunciation and transfer of rights in respect of marketable securities that is otherwise permitted by law.

(3 ) A trustee or legal representative may, notwith­ standing any Act or law or the provisions of the instrument, if any, creating the trust, in good faith act or pay money under or in pursuance of this Act.

9 .      (1) The registration of—

(a) a transfer of a marketable security; or

(b) an allotment of a marketable security to a person in whose favour a right thereto has been renounced and transferred,

pursuant to a prescribed instrument does not constitute a breach of the provisions of any memorandum or articles of association or trust deed or other instrument or enactment that relates to the marketable security.

(2) The omission from any register, certificate or other document relating to a marketable security of the occupation of the person who is, or is entitled to be, the registered holder thereof does not constitute a breach of any provision of any memorandum or articles of association or trust deed or other instrument or enactment that relates to marketable securities.

10. A broker shall not affix his stamp to an instrument intended to be used as a prescribed instrument unless the instrument relates to a sale or purchase made in the ordinary course of business of the broker for a consideration of not less than the unencumbered market value (at the time of the sale or purchase) of the marketable security or right in respect of a marketable security to which the instrument relates.

Penalty : One thousand dollars.

FIRST

FIRST SCHEDULE.

FORM A.

SECURITY TRANSFER FORM. MARKING STAMP.

PART 1—

Full Name of Company or Prescribed Corpor­ ation

Description of Securities Class If not fully paid, paid to Register
/ c
Quantity Words Figures Transferor's Broker hereby
Transferor's Broker hereby
Transferor's Broker hereby
Transferor's Broker hereby
certifies:—
certifies:—
certifies:—
certifies:—
Transfer Identification (i) Validity of Documents.
(i) Validity of Documents.
(i) Validity of Documents.
(i) Validity of Documents.
Number (ii) Stamp Duty (if applic­
(ii) Stamp Duty (if applic­
(ii) Stamp Duty (if applic­
(ii) Stamp Duty (if applic­

able)
able)
able)

able) has
has
has
has been

been
been

been or
or
or
or

Full Name(s) of Trans­ ferors)

will be paid.

will be paid.
will be paid.
will be paid.

Surname(s)

(Transferor's Broker's Stamp
(Transferor's Broker's Stamp
(Transferor's Broker's Stamp
(Transferor's Broker's Stamp

Christian Name(s) and Date)
and Date)
and Date)
and Date)
(Please use BLOCK Date of Sale

letters)

I/We hereby transfer t to the transferee(s) nam he above securities out of the name(s) in Part 1 hereof
ed in Part 2 hereof or to the several transferees named
in Part 2 of Broker's Tr I/We have no notice
in Part 2 of Broker's Tr I/We have no notice
in Part 2 of Broker's Tr I/We have no notice
in Part 2 of Broker's Tr I/We have no notice
in Part 2 of Broker's Tr I/We have no notice
in Part 2 of Broker's Tr I/We have no notice •ansfer Forms relating to the above securities,
of revocation of the power of attorney under which
this Transfer is signed.
this Transfer is signed.
this Transfer is signed.
this Transfer is signed.
this Transfer is signed.
this Transfer is signed.
Transferor(s) sign here
Transferor(s) sign here
Transferor(s) sign here
Transferor(s) sign here
Transferor(s) sign here
Transferor(s) sign here
Date signed
Date signed
Date signed
Date signed
Date signed

I/We hereby transfer t to the transferee(s) nam
I/We hereby transfer t to the transferee(s) nam
I/We hereby transfer t to the transferee(s) nam
I/We hereby transfer t to the transferee(s) nam

I/We hereby transfer t to the transferee(s) nam

Date signed / /
PART 2— Mr. "1 Transferee's Broker hereby
Full Name(s) and Mrs. \- certifies :—
Address(es) of Trans- Miss J Surname(s) (i) That the securities set
feree(s) out in Part 1 above
having been pur­
Christian Name(s) chased in the ordinary
course of business,
are to be registered in
the name(s) of the transferee(s) named in this Part.

(ii)  That Stamp Duty (if applicable) has been

State or will be paid,

and hereby requests that

(Please use BLOCK such entries be made in the

letters)

register as are necessary to give effect to this transfer.

(Transferee's Broker's Stamp

and Date)

Date of Purchase

PLEASE ENTER THE ABOVE SECURITIES ON THE REGISTER
FIRST

FIRST SCHEDULE—continued.

FORM B.

BROKER'S TRANSFER FORM. | MARKING STAMP.

PART 1—

Full Name of Company

or Prescribed Corpor-

Description of Securities Class If not fully paid, paid to Register
/ c
Words Figures

Transferor's Broker hereby
Transferor's Broker hereby

Transfer Identification

certifies:—
certifies:—

(i) That

(i) That the
the Security

Security

Transfer

Transfer Form
Form
relating
relating to
to the

the

Full Name(s) of Trans-

Full Name(s) of Trans- Surname(s)
Surname(s) securities
securities set
set out

out

above above has has been been lodged at the com­lodged at the com­

pany's / corporation's
pany's / corporation's
office.
office.

Christian Name(s) (ii) That Stamp Duty (if applicable) has been
(ii) That Stamp Duty (if applicable) has been

Christian Name(s)

or will be paid.
or will be paid.

(Please use BLOCK
(Please use BLOCK

letters)

letters) (Transferor's Broker's Stamp
(Transferor's Broker's Stamp

and Date)
and Date)

Date of Sale

PART 2—
PART 2—

and Mr. 1 Transferee's Broker hereby

Full

Full Name(s)
Name(s) and
Address(es) of Trans- Mrs. y certifies:—
Miss J Surname(s) (i) That the securities set

Address(es) of Trans-

out in Part 1 above

having been pur­
chased in the
ordinary course of
Christian Name(s) business, are to be
registered in the

name(s) of the trans­ feree(e ) named in

this Part.

(ii)  That Stamp Duty (if applicable) has been or will be paid,

State and hereby requests that
(Please use BLOCK such entries be made in the
letters) register as are necessary to give effect to this transfer.
(Transferee's Broker's Stamp

and Date)

Date of Purchase

PLEASE ENTER THE ABOVE SECURITIES ON THE REGISTER.
SECOND

SECOND SCHEDULE.

FOR COMPLETION BY TRANSFEREES OF SECURITIES WITH

A N U N C A L L E D LIABILITY.

To

(Name of company (or prescribed corporation) whose

securities are involved)

* I /We

of

being the transferee(s) of -
(Quantity) (Description of Securities)

each paid to in the abovenamed company or corporation and being the person(s) named as such in *Security Transfer Form/Broker's Transfer Form relating to those securities and being of or over the age of twenty-one years hereby agree

(a)

to accept the said securities subject to the several terms and conditions on which the transferor to m e / u s of the said; securities held them at the time of the sale; and

(b)

to become a *member/members of the company or corpora­ tion and to be bound by the memorandum and articles or by the constitution of the company or corporation.

D A T E D the day of , 19
Transferee's Signature -

"Delete whichever not applicable.

THIRD
THIRD SCHEDULE.

FORM A.

SECURITY RENUNCIATION AND MARKING STAMP.

TRANSFER FORM.

PART 1—
Full Name of Company or Prescribed Cor­ poration

Description of Rights . . Register
Quantity Words Figures Transferor's Broker hereby
Transferor's Broker hereby
Transferor's Broker hereby
certifies:—
certifies:—
certifies:—
Transfer Identification (i) Validity of Documents. able) has been or will
(i) Validity of Documents. able) has been or will
(i) Validity of Documents. able) has been or will
Number (ii) Stamp Duty (if applic­
(ii) Stamp Duty (if applic­
(ii) Stamp Duty (if applic­

be paid.
be paid.
be paid.

Full Name(s) of Trans­
Full Name(s) of Trans­

ferors)

ferors) Surname(s)

(Transferor's Broker's Stamp
(Transferor's Broker's Stamp
(Transferor's Broker's Stamp

and Date)
and Date)
and Date)

Christian Name(s)

(Please use BLOCK Date of Sale

letters)

I/We hereby renounce and transfer the above Rights in favour of the transfcrce(s) named in Part 2 hereof or to the several transferee(s) named in Part 2 of the Broker's Renunciation and Transfer Forms relating to the above Rights.

I/We have no notice of revocation of the power of attorney under which

this renunciation and transfer is signed.
Transferors) sign here, ,

Date signed / /
PART 2— Mr. "I Transferee's Broker hereby
Full Name(s) and Mrs. > certifies:—

Address(es) of Trans-

Miss J Surname(s)

(i) That the rights set out in Part 1 above having been purchased in the

feree(s)
ordinary course of

business, the market­

able securities to
Christian Name(s) which the rights

relate are to be allotted to the trans­

feree^) named in
this Part.

(ii) That Stamp Duty (if and hereby requests that

State applicable) has been
or will be paid,
(Please use BLOCK such marketable securities

letters)

be allotted by the company/ corporation to the trans­ feree(s) and such entries be made in the register as are necessary to give effect to this renunciation and trans­ fer.

(Transferee's Broker's Stamp

and Date)

APPLICATION MONEY OF IS ATTACHED Date of Purchase
PLEASE ENTER THE ABOVE SECURITIES ON THE REGISTER.
THIRD

THIRD SCHEDULE—continued.

FORM B.

BROKER'S RENUNCIATION AND

TRANSFER FORM. MARKING STAMP.

PART 1—

Full Name of Company or Prescribed Cor­ poration

Description of Rights.. 1 Register
Quantity Words Figures
Transfer Identification Transferor's Broker hereby
Transferor's Broker hereby
Number certifies:—
certifies:—
(i) That
(i) That the
the Security
Security

Renunciation

Renunciation and
and

Full Name(s) of Trans­

Full Name(s) of Trans­ Transfer Form relating
Transfer Form relating

feror^)

feror^) Surname(s)
Surname(s) to the rights set out

to the rights set out

above has been lodged
above has been lodged
at at the the company's/ company's/

corporation's office.
corporation's office.

(ii) That Stamp Duty (if will be paid.
(ii) That Stamp Duty (if will be paid.

Christian Name(s) applicable) has been or
applicable) has been or
(Please use BLOCK
(Please use BLOCK

Christian Name(s)

letters)

letters) (Transferor's Broker's Stamp
(Transferor's Broker's Stamp

and Date)
and Date)

Date of Sale

PART 2—

Full Name(s) and Mr. "I Transferee's Broker hereby That the rights set out in Part 1 above having been purchased in the
Address(es) of Trans- Mrs. > certifies:—
feree(s) Miss J Surname(s) (i)
ordinary course of

business, the market­

Christian Name(s) able securities to which the rights relate are to be allotted to the transferee(s) named in this Part.

(ii)  That Stamp Duty (if applicable) has been or

State will be paid,
(Please use BLOCK and hereby requests that

letters)

such marketable securities, be allotted by the company/ corporation to the trans­ feree^) and such entries be made in the register as are necessary to give effect to this renunciation and trans­ fer.

(Transferee's Broker's Stamp

and Date)

APPLICATION MONEY OF IS ATTACHED Date of Purchase
PLEASE ENTER THE ABOVE SECURITIES ON THE REGISTER.

FOURTH

FOURTH SCHEDULE.

F O R COMPLETION BY T R A N S F E R E E ( S ) OF RIGHTS WHERE
W H O L E OF M O N E Y S TO BE SUBSCRIBED FOR M A R K E T A B L E
SECURITIES TO W H I C H RIGHTS RELATE IS N O T P A Y A B L E

IN F U L L ON APPLICATION.

T o

( N a m e of Company or prescribed corporation whose rights

are involved)

* I /We

of
being the transferee of

(Quantity) (Description of Rights)

to marketable securities in respect of which there is an uncalled liability of per unit after the payment of application moneys and being the person(s) named as transferee(s) in the Security Renunciation and Transfer Form/Broker's Renuncia­ tion and Transfer Form relating to those rights and being of or over the age of twenty-one years, hereby agree

(a)

to accept the marketable securities to which the rights relate subject to the several terms and conditions upon which the marketable securities were offered by the company or pres­ cribed corporation for subscription; and

(b)

to become a member (members) of the company or pres­ cribed corporation and to be bound by the memorandum and articles or by the constitution of the company or prescribed corporation on becoming the registered holder of the marketable securities.

D A T E D the day of 19
Transferee's Signature

*Delete whichever not applicable.

MINE

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