| (1) | The transfer of uncertificated securities in an uncertificated securities register may be effected only— |
| (i) | an instruction to transfer sent and properly authenticated in terms of the rules of a central securities depository; or |
| (ii) | an order of a court; and |
| (c) | in accordance with this section and the rules of the central securities depository. |
| (a) | debiting the account in the uncertificated securities register from which the transfer is effected; and |
| (b) | crediting the account in the uncertificated securities register to which the transfer is effected, in accordance with the rules of a central securities depository. |
| (3) | The requirements of section 51(5), read with the changes required by the context, apply with respect to a transfer of uncertificated securities. |
| (4) | A transfer of ownership in accordance with this section occurs despite any fraud, illegality or insolvency that may— |
| (a) | affect the relevant uncertificated securities; or |
| (b) | have resulted in the transfer being effected, |
but a transferee who was a party to or had knowledge of the fraud or illegality, or had knowledge of the insolvency, as the case may be, may not rely on this subsection.
| (5) | A court may not order the name of a transferee contemplated in this section to be removed from an uncertificated securities register, unless that person was a party to or had knowledge of a fraud or illegality as contemplated in subsection (4). |
| (6) | Nothing in this section prejudices any power of a participant or central securities depository, as the case may be, to effect a transfer to a person to whom the right to any uncertificated securities of a company has been transmitted by operation of law. |
