Section 77 — Canada Business Corporations Act: Assurance that endorsement effective

An issuer may require an assurance that each necessary endorsement on a security is genuine and effective by requiring a guarantee of the signature of the person endorsing, and by requiring if the endorsement is by an agent or mandatary, reasonable assurance of authority to sign; if the endorsement is by a fiduciary, evidence of appointment or incumbency; if there is more than one fiduciary, reasonable assurance that all who are required to sign have done so;

and in any other case, assurance that corresponds as closely as practicable to the foregoing. For the purposes of subsection (1), a guarantee of the signature means a guarantee signed by or on behalf of a person reasonably believed by the issuer to be responsible. An issuer may adopt reasonable standards to determine responsible persons for the purpose of subsection (2). In paragraph (1)(b), evidence of appointment or incumbency means in the case of a fiduciary appointed by a court, a copy of the order certified in accordance with subsection 51(7), and dated not earlier than sixty days before the date a security is presented for transfer; or in any other case, a copy of a document showing the appointment or other evidence believed by the issuer to be appropriate. An issuer may adopt reasonable standards with respect to evidence for the purposes of paragraph (4)(b). An issuer is deemed not to have notice of the contents of any document referred to in subsection (4) except to the extent that the contents relate directly to appointment or incumbency. If an issuer demands assurance additional to that specified in this section for a purpose other than that specified in subsection (4) and obtains a copy of a will, trust or partnership agreement, by-law or similar document, the issuer is deemed to have notice of all matters contained therein affecting the transfer.