Corporations Act 2001

A bearer of a bearer share in a company registered under this Part may surrender the share to the company. The company must:

cancel the share; and

include the bearer’s name in the company’s register of members.

An offence based on subsection (1) is an offence of strict liability.

For strict liability, see section 6.1 of the Criminal Code.

The company is liable to compensate anyone who suffers a loss because the company includes the bearer’s name in the company’s register of members despite the fact that:

the share was not surrendered to the company; or

the company failed to cancel the share.

Subject to this section, the constitution of a company registered under this Part may provide that the bearer of a bearer share in the company is taken to be a member of the company for all purposes or for specified purposes.

A body must not issue bearer shares after it is registered as a company under this Part (see paragraph 254F(a)).