Section 87: Instrument of transfer

87. Instrument of transfer (1) (a) Subject to subsection (5) and notwithstanding its constitution, a company shall enter a transfer of shares or debentures in the share register or register of debenture holders where— (i) in the case of a company which, directly or indirectly, reckons amongst its assets any freehold or leasehold immovable property, a valid instrument of transfer in the form required by section 24 of the Registration Duty Act has been delivered to the company; or (ii) in any other case, a valid instrument of transfer in the form approved by the Registrar has been delivered to the company. (b) The company shall forthwith file with the Registrar a certified copy of the instrument of transfer referred to in paragraph (a). (2) Nothing in subsection (1) shall prejudice any power to register as a shareholder or debenture holder, a person to whom the right to any share or debenture has been transmitted by operation of the law. (3) A transfer of the share, debenture or other interest of a deceased shareholder of a company made by his heir or by the Curator shall, subject to any enactment relating to stamp duty or registration dues, be as valid as if he had been such a shareholder at the time of the execution of the instrument of transfer, even if the heir or the Curator is not himself a shareholder. (4) Before entering a transfer made under subsection (3) in the share register or register of debenture holders, the directors of the company may require the production of proper evidence of the title of the heir or, in the case of the Curator, of the vesting order. (5) Subsection (1) shall not apply to securities traded on a securities exchange. [S. 87 amended by Act 156 (1) (f) of Act 22 of 2005 w.e.f. 28 September 2007; s. 5 (e) of Act 27 of 2012 w.e.f. 22 December 2012.; s. 7 (c) of Act 27 of 2013 w.e.f. 21 December 2013.]