Commonwealth Consolidated Acts

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Certification of transfers

             (1)  The certification by a company of an instrument of transfer of securities of the company:

                     (a)  is taken as a representation by the company to any person acting on the faith of the certification that there have been produced to the company such documents as on the face of them show prima facie title to the securities in the transferor named in the instrument of transfer; and

                     (b)  is not taken as a representation that the transferor has any title to the securities.

             (2)  If a person acts on the faith of a false certification by a company made negligently, the company is under the same liability to the person as if the certification had been made fraudulently.

             (3)  A certification may be expressed to be limited to 42 days or any longer period from the date of certification. If it is, the company and its officers and employees are not, in the absence of fraud, liable in respect of the registration of any transfer of securities comprised in the certification after the end of:

                     (a)  the period so limited; or

                     (b)  any extension of that period given by the company;

if the instrument of transfer has not, within that period, been lodged with the company for registration.

             (4)  For the purposes of this section:

                     (a)  an instrument of transfer is taken to be certified if it bears the words "certificate lodged" or words to the like effect; and

                     (b)  the certification of an instrument of transfer is taken to be made by a company if:

                              (i)  the person issuing the instrument is a person authorised to issue certified instruments of transfer on the company's behalf; and

                             (ii)  the certification is signed by a person authorised to certify transfers on the company's behalf or by an officer of the company or of a body corporate so authorised; and

                     (c)  a certification that purports to be authenticated by a person's signature or initials (whether handwritten or not) is taken to be signed by the person unless it is shown that the signature or initials:

                              (i)  was not or were not placed there by the person; and

                             (ii)  was not or were not placed there by any other person authorised to use the signature or initials;

                            for the purpose of certifying transfers on the company's behalf.

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