Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:2:p17
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 2 (pt 17/22)
Character Range: 477386–480347

Warranties by member organisation whose identification code is included in transfer document

"1109E.(1) This section applies if the transfer document for a proper SCH transfer of quoted securities or quoted rights includes a member organisation's identification code as the identification code of the member organisation effecting the transfer.

"(2) If the member organisation is the transferor, the member organisation or, if it is a partnership, each of the partners in the member organisation, is taken to have warranted that:

  (a)     the transfer was effected by the member organisation; and

    (b)     the transferor was legally entitled or authorised to transfer the securities or rights.

  "(3) If:

  (a)     the member organisation is not the transferor; and

    (b)     the transfer is pursuant to a transaction in relation to which, or to transactions in relation to each of which, one of the following conditions is satisfied:

          (i) the transaction was entered into in the ordinary course of trading on a stock market;

          (ii) the transaction is, under the business rules or listing rules of a stock exchange, described, or to be described, as 'special' when it is reported to the stock exchange;

the member organisation or, if it is a partnership, each of the partners in the member organisation, is taken to have warranted that:

    (c)     the transferor was legally entitled or authorised to transfer the securities or rights; and

  (d)     the transfer was effected by the member organisation; and

    (e)     the member organisation was authorised by the transferor to effect the transfer.

  "(4) If:

   (a)     the member organisation is not the transferor; and

   (b)     subsection (3) does not apply;

the member organisation or, if it is a partnership, each of the partners in the member organisation, is taken to have warranted that:

   (c)     the transfer was effected by the member organisation; and

     (d)     the member organisation was authorised by the transferor to effect the transfer.

Indemnities in respect of warranted matters

  "1109F.(1) If:

   (a) a member organisation, or each of the partners in a partnership

     that is a member organisation, is taken by section 1109E to have warranted, in relation to a proper SCH transfer of quoted securities or quoted rights, that the transfer was effected by the member organisation; and

   (b) the transfer was not effected by the member organisation;

the member organisation, or, if it is a partnership, each of the partners in the member organisation, is liable to indemnify:

   (c)     the issuing body in relation to the securities or rights; and

   (d)     the transferor; and

   (e)     the transferee; and

     (f)      if a member organisation acted as the transferee's agent in the transfer—that member organisation; and

   (g)     the securities clearing house;

against any loss or damage arising from the transfer not