Sessional_Paper_1929 — Page 195

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VI.

Increased share contract duty, and abolition of transfer duty.

16. A tentative proposal of this nature, which was drawn up by Mr. Tester, is annexed (Annexe F.) The great objection to it is that the effect on the revenue is too doubtful as we have no information as to the amount collected at present by way of trans- fer duty. The Committee does not recommend the adoption of this proposal, but suggests that the Collector should regularly keep a record of the amount received by way of trans- fer duty in case this proposal is revived.

VII.

Treble duty on blank transfers.

17. Charge treble duty on blank transfers. An objection to this proposal is that it would involve a troublesome system of refunds as all transfers have to be stamped before execution by either party. The Committee does not recommend the adoption of this proposal.

Annexe A.

DRAFT SECTION

intended to prevent the passing on of dividends

to subsequent unregistered purchasers.

Passing

on of

dividends

prohibited.

(1) No person shall be entitled to claim, directly or indirectly, the pay- ment of any dividend, or of the amount or value of any dividend, on any share on a share register which is by law required to be kept within the Colony, unless (a) such person is the registered owner of the share in question at the time of such claim, or (b) such person was the registered owner of the share in question at some date subsequent to the declaration of the dividend in ques- tion, or (c) such person is entitled to be paid such dividend under a bona fide declaration of trust in favour of a specified person or firm, or otherwise as a bonâ fide cestui que trust, or (d) such person has bonâ fide lent money on the security of the share in question and is entitled by the express written terms of the loan agreement to claim such dividend.

(2) No person shall, orally or in writing demand or request, or accept; directly or indirectly, payment of any dividend, or of the amount or value of any dividend, which under the provisions of subsection (1) he is not entitled to claim.

(3) No person shall, directly or indirectly, pay any dividend, or the amount or value of any dividend, on any share on a share register which is by law required to be kept within the Colony, to any other person unless (a) such other person is the registered owner of the share in question, or (b) such other person was the registered owner of the share in question at some date subse- quent to the declaration of the dividend in question, or (c) such other person

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