--(1) This rule deals with a claim to enforce-
----(a) bearer debentures; or
----(b) debenture stock in respect of which the company has issued debenture stock certificates.
--(2) In the absence of notice of any defect in the title, the title of any person claiming to be a holder is proved by-
----(a) production of the debenture or debenture stock certificate; with
----(b) a certificate of identification signed by the person producing the debenture or certificate-
--------(i) identifying the debenture or certificate produced; and
--------(ii) certifying the person (giving his name and address) who is the holder.
--(3) This shall be the case even though judgment has been given in the proceedings or a certificate has been made in the action or claim certifying the holders of such debentures or certificates.
--(4) Where a debenture or certificate is produced, the attorney-at- law, for the claimant must endorse on the debenture or certificate a notice stating-
----(a) that the person identified under paragraph (2)(b)(ii) whose name and address is certified in the notice has been recorded as the holder of the debenture or debenture stock certificate;
----(b) that that person will be entitled to payment of any dividend in respect of the debenture or debenture stock certificate unless a new holder proves title in accordance with paragraph (2) before payment of the dividend; and
----(c) that if a new holder fails to prove his title in accordance with paragraph (2) he may incur additional delay, trouble and expense in obtaining payment.
--(5) The attorney-at-law for the claimant must-
----(a) preserve any certificates of identification produced under paragraph (2); and
----(b) keep a record of-
--------(i) the debentures or debenture stock certificates so produced;
--------(ii) the names and addresses of the persons producing them; and
--------(iii) the holders thereof,
--and must verify the record by affidavit if the court so requires.
Notes
Back to Part (75. Debenture Holders Claims)