(1) This section has effect where marketable rights relating to marketable securities are transferred by means of a sufficient transfer under this Division. (2) The transferee is taken:

(a)

to have applied at the execution time to the issuing body in relation to the securities for the allotment to him, her or it of the securities; and

(b)

to have agreed at the execution time to accept the securities subject to the terms and conditions on which the issuing body offers them for subscription.

(3) If the securities are shares, the transferee is taken to have agreed at the execution time to become a member of the issuing body and to be bound, on being registered as the holder of the shares, by the issuing body's constitution.