An Act for preserving Purchasers of Stock from Losses by Forged Transfers.
[5th August 1891]
Modifications etc. (not altering text)
C1Act applied by Aircraft and Shipbuilding Industries Act 1977 (c. 3), Sch. 5 para. 9
C2This Act is not necessarily in the form in which it has effect in Northern Ireland
Commencement Information
I1Act wholly in force at Royal Assent.
(1)Where a company or local authority issue or have issued shares, stock, or securities transferable by an instrument in writing [F1or by an exempt transfer, within the meaning of the Stock Transfer Act 1982]or by an entry in any books or register kept by or on behalf of the company or local authority, they shall have power to make compensation by a cash payment out of their funds for any loss arising from a transfer of any such shares, stock, or securities, in pursuance of a [F2forged instrument]or of a transfer under a forged power of attorney, [F3whether such loss arises, and whether the [F4instrument or power]of attorney was forged before or after the passing of this Act, and whether the person receiving such compensation, or any person through whom he claims, has or has not paid any fee or otherwise contributed to any fund out of which the compensation is paid].
[F5(1A)In subsection (1) above “instrument” has the same meaning as in Part I of the Forgery and Counterfeiting Act 1981.]
(2)Any company or local authority may, if they think fit, provide, either by fees not exceeding the rate of [F65p.] on every one hundred pounds transferred [F7with a minimum charge equal to that for twenty-five pounds] to be paid by the transferee upon the entry of the transfer in the books of the company or local authority, or by insurance, reservation of capital, accumulation of income, or in any other manner which they may resolve upon, a fund to meet claims for such compensation.
(3)For the purpose of providing such compensation any company may borrow on the security of their property, and any local authority may borrow with the like consent and on the like security and subject to the like conditions as to repayment by means of instalments or the provision of a sinking fund and otherwise as in the case of the securities in respect of which compensation is to be provided, but any money so borrowed by a local authority shall be repaid within a term not longer than five years. Any expenses incurred by a local authority in making compensation, or in the repayment of, or the payment of interest on, or otherwise in connexion with, any loan raised as aforesaid, shall, except so far as they may be met by such fees as aforesaid, be paid out of the [F8revenues]on which the security in respect of which compensation is to be made is charged.
(4)Any such company or local authority may impose such reasonable restrictions on the transfer of their shares, stock, or securities, or with respect to powers of attorney for the transfer thereof, as they may consider requisite for guarding against losses arising from forgery.
(5)Where a company or local authority compensate a person under this Act for any loss arising from forgery, the company or local authority shall, without prejudice to any other rights or remedies, have the same rights and remedies against the person liable for the loss as the person compensated would have had.
Textual Amendments
F1Words inserted by Stock Transfer Act 1982 (c. 41, SIF 69), ss. 3, 6(2), Sch. 2 para. 1(1)(a)
F2Words substituted by Stock Transfer Act 1982 (c. 41, SIF 69), ss. 3, 6(2), Sch. 2 para. 1(1)(b)
F3Words added by Forged Transfers Act 1892 (c. 36), s. 2
F4Words substituted by Stock Transfer Act 1982 (c. 41, SIF 69), ss. 3, 6(2), Sch. 2 para. 1(1)(c)
F5S. 1(1A) added by Stock Transfer Act 1982 (c. 41, SIF 69), ss. 3, 6(2), Sch. 2 para. 2
F6Words substituted by virtue of Decimal Currency Act 1969 (c. 19), s. 10(1)
F7Words inserted by Forged Transfers Act 1892 (c. 36), s. 3
F8Word substituted by S.I. 1990/1285, art. 2, Sch. Pt. I, para. 1
Modifications etc. (not altering text)
C3S. 1 amended by Forged Transfers Act 1892 (c. 36), s. 4
C4S. 1(1)(2)(4)(5) extended by S.I. 1955/1752 (1955 I, p. 778), reg. 41(2), and 1957/2228 (1957 I, p. 801), reg. 32(3)
For the purposes of this Act—
The expression “company” shall mean any company incorporated by or in pursuance of any Act of Parliament, or by royal charter.
[F9The expression “local authority”shall mean–
(a)a charging authority, a precepting authority, a combined police authority or a combined fire authority, as defined in section 144 of the Local Government Finance Act 1988;
(b)a levying body within the meaning of section 74 of that Act; and
(c)a body as regards which section 75 of that Act applies.]
Textual Amendments
F9Definition of “local authority” substituted by S.I. 1990/1285, art. 2, Sch. Pt. I para. 2
This Act shall apply to any industrial, provident, friendly benefit, building, or loan society incorporated by or in pursuance of any Act of Parliament as if the society were a company.
(1)This Act shall apply to any harbour authority or conservancy authority as if the authority were a company.
(2)For the purposes of this Act the expression “harbour authority” includes all persons, being proprietors of, or entrusted with the duty or invested with the power of constructing, improving, managing, regulating, maintaining, or lighting any harbour otherwise than for profit, and not being a joint stock company.
(3)For the purposes of this Act the expression “conservancy authority” includes all persons entrusted with the duty or invested with the power of conserving, maintaining, or improving the navigation of any tidal water otherwise than for profit, and not being a joint stock company.
In the case of any colonial stock to which the M1Colonial Stock Act 1877, applies, the Government of the colony of which the stock forms the whole or part of the public debt may, if they think fit, by declaration under their seal or under the signature of a person authorised by them in that behalf, and in either case deposited with the Commissioners of Inland Revenue, adopt this Act, and thereupon this Act shall apply to the colonial stock as if the registrar of the Government were a company and the stock were issued by him.
Marginal Citations
This Act may be cited as the Forged Transfers Act 1891.