Marginal note:Dealings with registered holder
51 (1) A corporation or a trustee defined in subsection 82(1) may, subject to sections 134, 135 and 138, treat the registered owner of a security as the person exclusively entitled to vote, to receive notices, to receive any interest, dividend or other payments in respect of the security, and otherwise to exercise all the rights and powers of an owner of the security.
Marginal note:Constructive registered holder
(2) Notwithstanding subsection (1), a corporation whose articles restrict the right to transfer its securities shall, and any other corporation may, treat a person as a registered security holder entitled to exercise all the rights of the security holder that the person represents, if the person furnishes the corporation with evidence as described in subsection 77(4) that the person is
(a) the heir of a deceased security holder, or the personal representative of the heirs, or the personal representative of the estate or succession of a deceased security holder;
(b) a personal representative of a registered security holder who is an infant, an incapable person or a missing person; or
(c) a liquidator of, or a trustee in bankruptcy for, a registered security holder.
Marginal note:Permissible registered holder
(3) If a person on whom the ownership of a security devolves by operation of law, other than a person described in subsection (2), furnishes proof of the person’s authority to exercise rights or privileges in respect of a security of the corporation that is not registered in the person’s name, the corporation shall treat the person as entitled to exercise those rights or privileges.
Marginal note:Immunity of corporation
(4) A corporation is not required to inquire into the existence of, or see to the performance or observance of, any duty owed to a third person by a registered holder of any of its securities or by anyone whom it treats, as permitted or required by this section, as the owner or registered holder thereof.
Marginal note:Persons less than 18 years of age
(5) If a person who is less than 18 years of age exercises any rights of ownership in the securities of a corporation, no subsequent repudiation or avoidance or, in Quebec, annulment or reduction of obligations is effective against the corporation.
Marginal note:Joint holders
(6) A corporation may treat as owner of a security the survivors of persons to whom the security was issued as joint holders, if it receives proof satisfactory to it of the death of any such joint holder.
Marginal note:Transmission of securities
(7) Subject to any applicable law relating to the collection of taxes, a person referred to in paragraph (2)(a) is entitled to become a registered holder, or to designate a registered holder, if the person deposits with the corporation or its transfer agent
(a) the original grant of probate, of letters of administration or, in Quebec, of the probate of the will or of the notarial minutes of the probate, or a copy certified to be a true copy of one of those documents by
(b) in the case of transmission by notarial will in Quebec, an authentic copy established in accordance with the laws of that province,
(c) an affidavit or declaration of transmission made by a person referred to in paragraph (2)(a), stating the particulars of the transmission, and
(d) the security certificate that was owned by the deceased holder
(i) in case of a transfer to a person referred to in paragraph (2)(a), with or without the endorsement of that person, and
(ii) in case of a transfer to any other person, endorsed in accordance with section 65,
and accompanied by any assurance the corporation may require under section 77.
Marginal note:Excepted transmissions
(8) Despite subsection (7), if the laws of the jurisdiction governing the transmission of a security of a deceased holder do not require a grant of probate or of letters of administration or the probate of the will or the notarial minutes of the probate in respect of the transmission, a personal representative of the deceased holder is entitled, subject to any applicable law relating to the collection of taxes, to become a registered holder or to designate a registered holder, if the personal representative deposits with the corporation or its transfer agent
(a) the security certificate that was owned by the deceased holder; and
(b) reasonable proof of the governing laws, of the deceased holder’s interest or right in the security and of the right of the personal representative or the person designated by the personal representative to become the registered holder.
Marginal note:Right of corporation
(9) Deposit of the documents required by subsection (7) or (8) empowers a corporation or its transfer agent to record in a securities register the transmission of a security from the deceased holder to a person referred to in paragraph (2)(a) or to such person as the person referred to in that paragraph may designate and, thereafter, to treat the person who thus becomes a registered holder as the owner of those securities.
- R.S., 1985, c. C-44, s. 51;
- 2001, c. 14, ss. 31, 135(E);
- 2011, c. 21, s. 31;
- 2018, c. 8, s. 9(E).
(a) if a valid security, similar in all respects to the security involved in the overissue, is reasonably available for purchase, the person entitled to the validation or issue may compel the issuer to purchase and deliver such a security against surrender of the security that the person holds;
(b) if a valid security, similar in all respects to the security involved in the overissue, is not reasonably available for purchase, the person entitled to the validation or issue may recover from the issuer an amount equal to the price the last purchaser for value paid for the invalid security.
Marginal note:Retroactive validation
(2) When an issuer amends its articles or a trust indenture to which it is a party to increase its authorized securities to a number equal to or in excess of the number of securities previously authorized plus the amount of the securities overissued, the securities so overissued are valid from the date of their issue.
Marginal note:Payment not a purchase or redemption
(3) A purchase or payment by an issuer under subsection (1) is not a purchase or payment to which section 34, 35, 36 or 39 applies.
- R.S., 1985, c. C-44, s. 52;
- 2001, c. 14, s. 135(E).
Marginal note:Burden of proof
53 In an action on a security,
(a) unless specifically denied in the pleadings, each signature on the security or in a necessary endorsement is admitted;
(b) a signature on the security is presumed to be genuine and authorized but, if the effectiveness of the signature is put in issue, the burden of establishing that it is genuine and authorized is on the party claiming under the signature;
(c) if a signature is admitted or established, production of the instrument entitles a holder to recover on it unless the defendant establishes a defence or a defect going to the validity of the security; and
(d) if the defendant establishes that a defence or defect exists, the plaintiff has the burden of establishing that the defence or defect is ineffective against the plaintiff or some person under whom the plaintiff claims.
- R.S., 1985, c. C-44, s. 53;
- 2001, c. 14, s. 135(E).
Marginal note:Securities fungible
54 Unless otherwise agreed and subject to the provisions of this Act, of any other applicable Act of Parliament, of any applicable Act of the legislature of a province or of any applicable regulation made under any such Act or to any applicable stock exchange rule, a person required to deliver securities may deliver any security of the specified issue.
- R.S., 1985, c. C-44, s. 54;
- 2001, c. 14, s. 135(E);
- 2018, c. 8, s. 10.
Issue — Issuer
Marginal note:Notice of defect
55 (1) Even against a purchaser for value without notice of a defect going to the validity of a security, the terms of the security include those stated on the security and those incorporated in it by reference to another instrument or act, statute, rule, regulation or order to the extent that the terms so incorporated do not conflict with the stated terms, but such a reference is not of itself notice to a purchaser for value of a defect going to the validity of the security, even though the security expressly states that a person accepting it admits the notice.
Marginal note:Purchaser for value
(2) A security is valid in the hands of a purchaser for value without notice of any defect going to its validity.
Marginal note:Lack of genuineness
(3) Subject to section 57, the fact that a security is not genuine is a complete defence even against a purchaser for value without notice.
Marginal note:Ineffective defences
(4) All other defences of an issuer, including non-delivery and conditional delivery of a security, are ineffective against a purchaser for value without notice of the particular defence.
- R.S., 1985, c. C-44, s. 55;
- 2011, c. 21, s. 32(E).
- Date modified: