Part 9 — Security Certificates, Registers and Transfers Division 1 Interpretation and Application
224 Limitation on issuer's liability
relating to the collection of taxes, an issuer is not liable to the
owner or any other person who incurs a loss as a result of the
registration of a transfer of a security if
(a) the necessary endorsements were on or with the security,
and
(b) the issuer had no duty to inquire into adverse claims or h ad
discharged that duty.
(2) If an issuer has registered a transfer of a security to a person
not entitled to it, the issuer must on demand deliver a like security
to the owner unless
(a) by virtue of subsection (1) the issuer is not liable,
(b) the owner is precluded by section 225(1) from asserting a
claim, or
(c) the delivery would result in an overissue to which section
177 applies.