Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.11.17

Transfer document that purports to bear stamp of transferor's broker

             (1)  This regulation applies if a transfer document relating to Division 3 assets or Division 3 rights:

                     (a)  is a duly completed Part 1; and

                     (b)  bears a stamp that purports to be a stamp of the transferor's broker (the designated broker ).

             (2)  Each associate (if any) of the designated broker is taken to have warranted:

                     (a)  that the statements in the transfer document that purport to be certified by the designated broker are accurate; and

                     (b)  that the transferor is:

                              (i)  the registered holder of, or entitled to be registered as the holder of, the Division 3 assets; or

                             (ii)  is entitled to the Division 3 rights;

                            and is legally entitled or authorised to sell or dispose of the Division 3 assets or Division 3 rights.

             (3)  If the designated broker is not a broker's agent, the designated broker is taken to have warranted:

                     (a)  that the statements in the transfer document that purport to be certified by the designated broker are accurate; and

                     (b)  that the transferor is:

                              (i)  the registered holder of, or entitled to be registered as the holder of, the Division 3 assets; or

                             (ii)  is entitled to the Division 3 rights;

                            and is legally entitled or authorised to sell or dispose of the Division 3 assets or Division 3 rights.

             (4)  The following additional arrangements apply if the transfer document has been duly completed in accordance with Part 1 of Form 1 or Form 5:

                     (a)  if, when the transfer document was stamped with the stamp mentioned in paragraph (1)(b), the designated broker had authority to sell the Division 3 assets or Division 3 rights, on the transferor's behalf, to:

                              (i)  the transferee; or

                             (ii)  particular persons who include, or particular classes of persons at least one of which includes, the transferee; or

                            (iii)  any person at all;

                            the designated broker is taken to have been authorised to execute, and to have executed, the transfer document on the transferor's behalf;

                     (b)  each associate (if any) of the designated broker is liable to indemnify:

                              (i)  the issuer in relation to the Division 3 assets or Division 3 rights; and

                             (ii)  the transferor; and

                            (iii)  the transferee; and

                            (iv)  the transferee's broker;

                            against any loss or damage arising if:

                             (v)  the stamp mentioned in paragraph (1)(b) is not the designated broker's stamp; or

                            (vi)  apart from paragraph (a), the designated broker was not authorised to execute the transfer document on the transferor's behalf;

                     (c)  if the designated broker is not a broker's agent, the designated broker is liable to indemnify:

                              (i)  the issuer in relation to the Division 3 assets or Division 3 rights; and

                             (ii)  the transferor; and

                            (iii)  the transferee; and

                            (iv)  the transferee's broker;

                            against any loss or damage arising if:

                             (v)  the stamp mentioned in paragraph (1)(b) is not the designated broker's stamp; or

                            (vi)  apart from paragraph (a), the designated broker was not authorised to execute the transfer document on the transferor's behalf.



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