New South Wales Consolidated Acts

MARKETABLE SECURITIES ACT 1970 - SECT 9

9 Registration by company of prescribed instrument

(1) A company or prescribed corporation with which a sufficient instrument of transfer under section 5 is lodged for the purpose of registering a transfer of marketable securities or obtaining the allotment of marketable securities, is and its officers are, in the absence of knowledge to the contrary, entitled to assume without inquiry:

(a) that a stamp upon the instrument which purports to be the stamp of the transferee’s broker is the stamp of that broker,

(b) that a stamp upon the instrument which purports to be the stamp of the transferor’s broker is the stamp of that broker, and

(c) that a stamp upon the instrument which purports to be the stamp of a prescribed stock exchange or a prescribed stock exchange under a corresponding law is the stamp of that stock exchange.

(2) A company or prescribed corporation with which a sufficient instrument of transfer under section 6 is lodged for the purpose of registering a transfer of marketable securities or obtaining the allotment of marketable securities, is and its officers are, in the absence of knowledge to the contrary, entitled to assume without inquiry that:

(a) at the time of the execution of the instrument, the authorized trustee corporation named in the instrument was holding the marketable securities or the rights to the marketable securities in the ordinary course of its business in trust for or on behalf of the transferee, and

(b) the transfer was not made by way of a sale, gift or exchange of the marketable securities or rights.