Victorian Consolidated Legislation

Marketable Securities Act 1970 - SECT 7

Execution of transfers by transferee

7. Execution of transfers by transferee



(1) Where marketable securities in a company or prescribed corporation are
transferred by means of a sufficient instrument of transfer under this Act,
the transferee shall be deemed to have agreed at the relevant time to accept
the marketable securities subject to the several terms and conditions on which
the transferor held them at that time, being the terms and conditions
applicable as between the company or prescribed corporation and the holder for
the time being of the marketable securities.

(2) Where rights to marketable securities in a company or prescribed
corporation, for which the whole of the moneys to be subscribed is payable in
full on application being made for them, are transferred by means of a
sufficient instrument of transfer under this Act, the transferee shall be
deemed-

   (a)  to have made application at the relevant time to the company or
        prescribed corporation for the allotment to him of the marketable
        securities; and

   (b)  to have agreed at the relevant time to accept the marketable
        securities subject to the terms and conditions upon which they are
        offered by the company or prescribed corporation for subscription.

(3) Where marketable securities that are shares in a company or prescribed
corporation are transferred by means of a sufficient instrument of transfer
under this Act, the transferee shall be deemed to have agreed at the relevant
time-

   (a)  to become a member of the company or prescribed corporation; and

   (b)  to be bound by the memorandum and articles or by the constitution of
        the company or prescribed corporation.

(4) In this section the relevant time means-

   (a)  in relation to a sufficient instrument of transfer under section 5,
        the time of the affixing of a stamp which purports to be that of the
        transferee's broker; and

   (b)  in relation to a sufficient instrument of transfer under section 6,
        the time of execution by the transferor.