Companies Act, 1973 (Act No. 61 of 1973)

Chapter V: Share capital, Acquisition by Companies of own Shares, Shares, Allotment and Issue of Shares, Members and Register of Members, Debentures, Transfers, and Restrictions on Offering Shares for Sale

Transfer of Shares and Debentures

137. Duty of company with reference to person under contractual disability
Purchase cart Previous page Return to chapter overview Next page

 

 

When a company records in its registers the transfer of any security, it shall not be under any duty to satisfy itself that such transfer is within the contractual power of the transferor or transferee or that any legal requisite which obtains with reference to the ability of the transferor or transferee to transfer or to take transfer has been complied with or that any person signing any document relevant to the transfer on behalf of any person or company has been duly authorised to sign that document: Provided that the provisions of this section shall not absolve any company from liability arising from any fraudulent act to which it is knowingly a party.