13Offences

13 Offences

13 Offences

(1) A broker shall not in the State affix a broker’s stamp to an instrument that may be used as a sufficient instrument of transfer under this Act or under a corresponding law unless the instrument relates to a sale or purchase made in the ordinary course of business of the broker for a consideration of not less than the unencumbered market value (at the time of the sale or purchase) of the marketable securities or rights to marketable securities to which the instrument relates.

Penalty: $1,000.

(2) A prescribed stock exchange or a prescribed stock exchange under a corresponding law shall not in the State affix a stock exchange stamp to an instrument that may be used as a sufficient instrument of transfer under this Act or under a corresponding law unless:

(a) there has been lodged, or

(b) the stock exchange holds a duly completed instrument of transfer bearing a certificate which purports to be that of the transferor’s broker, that there has been or will be lodged,

with the company or prescribed corporation that has issued or proposes to issue the marketable securities or rights to marketable securities to which that first-mentioned instrument relates a duly completed instrument of transfer, being Part 1 of Form One, relating to those marketable securities or rights.

Penalty: $1,000.

(3) An authorized trustee corporation shall not in the State execute an instrument that may be used as a sufficient instrument of transfer under section 6 or under a like provision of a corresponding law if the instrument relates to a transfer of marketable securities or of rights to marketable securities:

(a) made by way of a sale, gift or exchange of the marketable securities or rights, or

(b) to or in favour of a person who is not the beneficial owner of the marketable securities or rights.

Penalty: $1,000.

(4) A person other than an authorized trustee corporation shall not in the State knowingly cause, authorize or permit to be executed an instrument that may be used as a sufficient instrument of transfer under section 6 or under a like provision of a corresponding law if it is not a sufficient instrument of transfer within the meaning of that section or provision as the case may be.

Penalty: $1,000.

(5) A person shall not knowingly lodge or cause to be lodged with a company or prescribed corporation an instrument to which a stamp has been affixed in contravention of subsection (1) or (2), or which has been executed in contravention of subsection (3), for the purpose of securing the registration of the transfer of marketable securities or the allotment of marketable securities to the transferee named therein.