Part 9 — Security Certificates, Registers and Transfers Division 1 Interpretation and Application
177 Overissue
validate a security or compel its issue or reissue do not apply if the
validation, issue or reissue of a security would result in overissue.
(2) The person who is entitled to a validation or issue may, if there
has been an overissue and if a valid security that is similar in all
respects to the security involved in the overissue is reasonably
available for purchase, compel the issuer to purchase and deliver
that security against the surrender of the security that the person
holds.
(3) If there is no valid security that is similar in all respects to the
security involved in the overissue reasonably available for
purchase, the person who is 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.
(4) Overissued securities are valid from the date they were issued
only if the issuer increases the number of its authorized securities
to a number equal to or greater than the number of securities
previously authorized plus the number of the overissued securities.