Part 21Certification and transfer of securities
Chapter 2Evidencing and transfer of title to securities without written instrument
Powers exercisable
786Provision enabling or requiring arrangements to be adopted
1
Regulations under this Chapter may make provision—
a
enabling the members of a company or of any designated class of companies to adopt, by ordinary resolution, arrangements under which title to securities is required to be evidenced or transferred (or both) without a written instrument; or
b
requiring companies, or any designated class of companies, to adopt such arrangements.
2
The regulations may make such provision—
a
in respect of all securities issued by a company, or
b
in respect of all securities of a specified description.
3
The arrangements provided for by regulations making such provision as is mentioned in subsection (1)—
a
must not be such that a person who but for the arrangements would be entitled to have his name entered in the company’s register of members ceases to be so entitled, and
b
must be such that a person who but for the arrangements would be entitled to exercise any rights in respect of the securities continues to be able effectively to control the exercise of those rights.
4
The regulations may—
a
prohibit the issue of any certificate by the company in respect of the issue or transfer of securities,
b
require the provision by the company to holders of securities of statements (at specified intervals or on specified occasions) of the securities held in their name, and
c
make provision as to the matters of which any such certificate or statement is, or is not, evidence.
5
In this section—
a
references to a designated class of companies are to a class designated in the regulations or by order under section 787; and
b
“specified” means specified in the regulations.