Victorian Consolidated Legislation

Marketable Securities Act 1970 - SECT 8

Effect of certain stamps on prescribed instrument

8. Effect of certain stamps on prescribed instrument



(1) Where a duly completed instrument of transfer bears a stamp that purports
to be that of the transferor's broker, a prescribed stock exchange or a
prescribed stock exchange under a corresponding law and to have been affixed
in the State, the broker (not being a broker's agent) or stock exchange whose
stamp that stamp purports to be and, if the stamp purports to be that of the
transferor's broker (whether or not he is a broker's agent), an associate of
that broker-

   (a)  shall be deemed to have warranted the accuracy of the statements in
        his or its certificate set out in the instrument;

   (b)  shall be deemed to have warranted that the transferor is the
        registered holder of or is entitled to be registered as the holder of
        the marketable securities to which the instrument relates or is
        entitled to the rights to marketable securities to which the
        instrument relates and is legally entitled or authorized to sell or
        dispose of those marketable securities or rights; and



   (c)  shall be liable to indemnify-

   (i)  the company, prescribed corporation, foreign company or prescribed
        corporation under the corresponding law that has issued or proposes to
        issue the marketable securities or rights to marketable securities to
        which the instrument relates;

   (ii) the transferee; and

   (iii) the transferee's broker- against any loss or damage arising from a
        forged or unauthorized signature of the transferor appearing in the
        instrument.

(2) Without limiting the operation of subsection (1), where a duly completed
instrument of transfer, which bears a stamp that purports to be that of the
transferor's broker and to have been affixed in the State, relates to
marketable securities or rights to marketable securities to which or to any of
which a duly completed instrument of transfer, which bears a stamp that
purports to be that of a prescribed stock exchange or a prescribed stock
exchange under a corresponding law relates, the broker (not being a broker's
agent) whose stamp that first-mentioned stamp purports to be and (whether or
not that broker is a broker's agent) an associate of that broker shall be
liable to indemnify that stock exchange against any loss or damage arising
from a forged or un-authorized signature of the transferor appearing in the
instrument.







(3) A reference in subsection (1) or (2)-

   (a)  to a duly completed instrument of transfer is a reference to an
        instrument-

   (i)  that is in accordance with or to the effect of Part 1 of Form One,
        Two, Three, Five, Six or Seven and that has been duly completed within
        the meaning of section 5; or

   (ii) that is in accordance with or to the effect of a like part of a like
        Form under a corresponding law and that has been duly completed within
        the meaning of a provision of that corresponding law that corresponds
        to section 5; and

   (b)  to an associate of a broker is a reference-

   (i)  where the broker whose stamp the stamp on the instrument purports to
        be is a member of a firm of brokers and is not a broker's agent-to
        each other member of that firm; and

   (ii) where the broker whose stamp the stamp on the instrument purports to
        be is a broker's agent, to the broker for whom he is a broker's agent
        and, if the broker for whom he is a broker's agent is a member of a
        firm of brokers, to each other member of that firm.

(4) In this section-





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marketable security in relation to a duly completed instrument of transfer
under a corresponding law, means a marketable security within the meaning of
the corresponding law;

right to marketable security in relation to a duly completed instrument of
transfer under a corresponding law, means a right to a marketable security
within the meaning of the corresponding law.