126Time and effect of transfer of shares

126 Time and effect of transfer of shares

(1) When a certificate issued under section 125 for a transfer of shares comes into force, the shares in the target body that are to be transferred, wherever those shares are located, become shares held by the receiving body without any transfer, conveyance or assignment.

(2) Those shares become shares held by the receiving body free from any trust, liability or other encumbrance.

Certificate provisions for things to happen on transfer etc. are taken to have happened etc.

(3) If the certificate includes provisions of a kind referred to in paragraph 125(5)(a), then:

(a) if the provisions specify that particular things are to happen or are taken to be the case—those things are, by force of this subsection, taken to happen, or to be the case, in accordance with those provisions; and

(b) if the provisions specify a mechanism for determining things that are to happen or are taken to be the case—things determined in accordance with the mechanism are, by force of this subsection, taken to happen, or to be the case, as determined in accordance with that mechanism.

Agreed provisions for things to happen on transfer etc. are taken to have happened etc.

(4) If the Reserve Bank has approved a statement under subsection 121(2) in relation to the transfer, then:

(a) if the statement specifies that particular things are to happen or are taken to be the case—those things are, by force of this subsection, taken to happen, or to be the case, in accordance with the statement; and

(b) if the statement specifies a mechanism for determining things that are to happen or are taken to be the case—things determined in accordance with that mechanism are, by force of this subsection, taken to happen, or to be the case, as determined in accordance with that mechanism.