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Section 506 of The Companies Act No. 17 of 2015: Provision enabling procedures for evidencing and transferring title

    

(1) Regulations may be made for the purpose of this Division to enable title to securities to be evidenced and transferred without a written document.
(2) In particular, those regulations may—
(a) prescribe procedures for recording and transferring title to securities; and
(b) regulate those procedures and the persons responsible for or involved in their operation.
(3) Any such regulations are invalid to the extent that they do not contain such safeguards as may be necessary—
(a) for the protection of investors; and
(b) for ensuring that competition is not restricted, distorted or prevented.
(4) Any such regulations may, for the purpose of enabling or facilitating the operation of the procedures referred to in subsection (2)(a), prescribe the rights and obligations of persons in relation to securities dealt with under the procedures.
(5) Any such regulations may also—
(a) include provisions for the purpose of giving effect to— (i) the transmission of title to securities by operation of law;
(ii) any restriction on the transfer of title to securities arising under the provisions of any enactment or document, Court order or agreement; and
(iii) any power conferred by any such provision on a person to deal with securities on behalf of the person entitled; and
(b) make provision with respect to the persons responsible for the operation of the procedures prescribed by the regulations— (i) as to the consequences of their insolvency or incapacity; or
(ii) as to the transfer from them to other persons of their functions in relation to those procedures.

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Disclaimer: This document is not to be taken as legal advise.

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