Forum Archive Index - November 2001

["Ken Donelan" <kdonelan@ihug.co.nz>]

You have entered into a legal contract with the vendor of the shares so they
are yours from the date of the contract. Any bonus issue, dividend, etc
declared since the contract date are to your benefit. (Likewise you will
suffer the loss if they go bust!) The vendor will not receive your money
until he passes over the share certificate(s) but keep pushing Access to put
pressure on the broker of the vendor.

Six weeks may seem a long to wait for the shares to be put in your name but
old timers (like myself) will remember the heady days of 1987 when a six
month wait was common - and that was for shares on the main board!


----- Original Message -----
From: "Kevin Barclay" <kw.barclay@paradise.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Thursday, November 15, 2001 5:36 PM
Subject: [sharechat] Secondary Board trading question


> About 6 weeks ago I purchased some Botry Zen shares via Access Brokerage.
I
> received a contract note for the purchase & my trading account was debited
> on the day for the cost of the shares. Now, 6 weeks later I have found
that
> the shares are still not registered in my name. The relevant registry (BK)
> had received nothing from Access Brokerage, so I rang them. The nice
people
> at Access have told me that they have not "received" the shares from the
> selling party yet, and are unable to complete the transaction until this
> occurs (informal market remember, although I don't quite understand how
this
> process works).
>
> Question: who owns the shares at this moment? I don't have the money any
> more, but neither do I have the shares registered in my name. Presumably
the
> seller will not get the money until they surrender the shares to Access
(or
> however it happens).
>
> Also, what happens if (say) a bonus issue happened tommorrow. Who is
> entitled to the additional shares?
>
> Access have told me that this is the risk you take when dealing in the
> informal market, however I always believed the risk was in terms of lack
of
> disclosure of items to the public by the company concerned, as opposed to
> the risk of not being able to complete a transaction for an excessive
amount
> of time.
>
> Can anyone shed some light on this for me please?
>
> Thanks in advance
> Kev.
>
>
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