7Execution of transfers by transferee

7 Execution of transfers by transferee

7 Execution of transfers by transferee

(1) Where marketable securities in a company or prescribed corporation are transferred by means of a sufficient instrument of transfer under this Act, the transferee shall be deemed to have agreed at the relevant time to accept the marketable securities subject to the several terms and conditions on which the transferor held them at that time, being the terms and conditions applicable as between the company or prescribed corporation and the holder for the time being of the marketable securities.

(2) Where rights to marketable securities in a company or prescribed corporation, for which the whole of the moneys to be subscribed is payable in full on application being made for them, are transferred by means of a sufficient instrument of transfer under this Act, the transferee shall be deemed:

(a) to have made application at the relevant time to the company or prescribed corporation for the allotment to him of the marketable securities, and

(b) to have agreed at the relevant time to accept the marketable securities subject to the terms and conditions upon which they are offered by the company or prescribed corporation for subscription.

(3) Where marketable securities that are shares in a company or prescribed corporation are transferred by means of a sufficient instrument of transfer under this Act, the transferee shall be deemed to have agreed at the relevant time:

(a) to become a member of the company or prescribed corporation, and

(b) to be bound by the memorandum and articles or by the constitution of the company or prescribed corporation.

(4) In this section, the relevant time means:

(a) in relation to a sufficient instrument of transfer under section 5, the time of the affixing of a stamp which purports to be that of the transferee’s broker, and

(b) in relation to a sufficient instrument of transfer under section 6, the time of execution by the transferor.