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Companies Act 2006

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This is the original version (as it was originally enacted).

775Certification of instrument of transfer
This section has no associated Explanatory Notes

(1)The certification by a company of an instrument of transfer of any shares in, or debentures of, the company is to be taken as a representation by the company to any person acting on the faith of the certification that there have been produced to the company such documents as on their face show a prima facie title to the shares or debentures in the transferor named in the instrument.

(2)The certification is not to be taken as a representation that the transferor has any title to the shares or debentures.

(3)Where a person acts on the faith of a false certification by a company made negligently, the company is under the same liability to him as if the certification had been made fraudulently.

(4)For the purposes of this section—

(a)an instrument of transfer is certificated if it bears the words “certificate lodged” (or words to the like effect);

(b)the certification of an instrument of transfer is made by a company if—

(i)the person issuing the instrument is a person authorised to issue certificated instruments of transfer on the company’s behalf, and

(ii)the certification is signed by a person authorised to certificate transfers on the company’s behalf or by an officer or employee either of the company or of a body corporate so authorised;

(c)a certification is treated as signed by a person if—

(i)it purports to be authenticated by his signature or initials (whether handwritten or not), and

(ii)it is not shown that the signature or initials was or were placed there neither by himself nor by a person authorised to use the signature or initials for the purpose of certificating transfers on the company’s behalf.

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