Chapter 2: Formation, Administration and Dissolution of Companies
Part E: Securities registration and transfer

s53: Transfer of uncertificated securities

  • (1) The transfer of uncertificated securities in an uncertificated securities register may be effected only:
    • (a) by a participant or central securities depository;
      • (b) on receipt of;
        • (i) an instruction to transfer sent and properly authenticated in terms of the rules of a central securities depository; or
          • (ii) an order of a court; and
          • (c) in accordance with this section and the rules of the central securities depository.
          • (2) Transfer of ownership in any uncertificated securities must be effected by:
            • (a) debiting the account in the uncertificated securities register from which the transfer is effected; and
              • (b) crediting the account in the uncertificated securities register to which the transfer is effected, in accordance with the rules of a central securities depository.
              • (3) The requirements of section 51(5), read with the changes required by the context, apply with respect to a transfer of uncertificated securities.
                • (4) A transfer of ownership in accordance with this section occurs despite any fraud, illegality or insolvency that may:
                  • (a) affect the relevant uncertificated securities; or
                    • (b) have resulted in the transfer being effected,
                    • but a transferee who was a party to or had knowledge of the fraud or illegality, or had knowledge of the insolvency, as the case may be, may not rely on this subsection.
                    • (5) A court may not order the name of a transferee contemplated in this section to be removed from an uncertificated securities register, unless that person was a party to or had knowledge of a fraud or illegality as contemplated in subsection (4).
                      • (6) Nothing in this section prejudices any power of a participant or central securities depository, as the case may be, to effect a transfer to a person to whom the right to any uncertificated securities of a company has been transmitted by operation of law.

                        Related Sections

                        s51: Registration and transfer of certificated securities

                        Related Regulations

                        No related regulations.

                        Related Notes

                        No related note.

                        Related Forms

                        No related forms.