Securities Transfer Act
The Securities Transfer Act, 2006 is an Ontario statute on how securities are acquired and transferred. It says a share issued by a corporation is a security, defines delivery and control for a purchaser, which includes someone taking by pledge, and sets when an issuer must register a transfer.
A share buyer or a lender taking a share pledge meets this Act when a transfer has to take effect. This entry covers Ontario’s Act only; check the rules where you are. See what if the seller wants a share pledge and the share pledge entry.
Delivery and registration
Delivery of a certificated security to a purchaser occurs when the purchaser acquires possession of the security certificate, or in the other ways section 68 lists. For an uncertificated security, delivery occurs when the issuer registers the purchaser as registered owner, or in the other ways section 68(2) lists. Section 86 sets the conditions under which an issuer must register a transfer, including that the transfer does not violate a restriction imposed by statute or by the issuer in accordance with section 62.
The link to security interests
Ontario’s Personal Property Security Act refers to this Act for what counts as a security, and for delivery and control. So a share pledge is read under both. See security interest.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of OntarioGovernmentSecurities Transfer Act, 2006, S.O. 2006, c. 8
- 02Government of OntarioGovernmentPersonal Property Security Act, R.S.O. 1990, c. P.10
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