The section provides that on application of the transferor, the company shall enter in its register the name of the transferee as if application for entry were made by the transferee. Where is the section that provides for the transferee to apply for registration ?
SECTION 83.
Question proposed : " That Section 83 stand part of the Bill ".
It has always been there.
It is always done but I cannot find any such section.
That has been established by case law. But there is no obligation on the transferor to see that the transfer has been registered. It is a matter for the transferee to look after his own interest.
Is there an obligation on the company to accept an application by the transferee to register ?
A transferee is accepting the liability for the shares and it is reasonable to ask the company to register. However, it requires some more information if somebody comes along and says : " So and so has taken the shares ".
The transferee's rights are set out in the articles of association and all we are doing under this section is giving the right to the transferor to register if he finds the transfer has not been registered. He may wish to get off the books of the company and this gives him the right to get himself off but the rights of the transferee must be provided for in the articles of association.
This goes back to Section 81, which is where you have proper deeds of transfer. In effect, Section 81 covers proper deeds of transfer in all cases now and if you have proper deeds of transfer duly executed by both parties, then it is reasonable enough to say that every party to the deed can produce it, or its counterpart, and get registration. That is the logical position.
That is it, yes.
Is Deputy Booth correct?
Deputy Booth is correct. If you look at Section 79—" transferable in manner provided by the Articles of the company . . . ."
Question put and agreed to.