THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.13 - TITLE TO, AND TRANSFER OF, SECURITIES

Division 3 - Transfer of marketable securities and marketable rights

Subdivision C - SCH-regulated transfers

SECTION 1109D   EFFECT OF PROPER SCH TRANSFER ON TRANSFEREE  

1109D(1)  [Quoted securities]  

If a proper SCH transfer of quoted securities takes effect at a particular time:

(a)  the transferee is taken to have agreed at that time to accept the securities subject to the terms and conditions on which the transferor held them immediately before that time, being the terms and conditions applicable as between the issuing body in relation to, and the holder for the time being of, the securities; and

(b)  if the securities are shares - the transferee is also taken to have agreed at that time to become a member of the issuing body and to be bound by the issuing body's constitution.

1109D(2)  [Quoted rights]  

If a proper SCH transfer of quoted rights relating to marketable securities takes effect at a particular time:

(a)  the transferee is taken:

(i) to have applied at that time to the issuing body in relation to the securities for the allotment to him, her or it of the marketable securities; and

(ii) to have agreed at that time to accept the marketable securities subject to the terms and conditions on which the issuing body offers them for subscription; and

(b)  if the marketable securities are shares - the transferee is also taken to have agreed, at that 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.