Common use of EFFECT OF LACK OF FORMALITY Clause in Contracts

EFFECT OF LACK OF FORMALITY. It is agreed that should the envisaged transfer of shares fail to be effective due to a lack of formality (including but not limited to a failure to register the transfer correctly in the registers of the company or due to a refusal by the directors of the company whose Shares are being transferred) then the effect shall be the transfer of all beneficial interest in the Shares to the Transferee by the creation of a trust in favour of the Transferee as beneficiary in which the Shares comprise the subject, and the Transferor is the trustee.

EFFECT OF LACK OF FORMALITY. It is agreed that should the envisaged transfer of shares Shares fail to be effective due to a lack of formality (including but not limited to a failure to register the transfer correctly in the registers of the company or due to a refusal by the directors of the company whose Shares are being transferred) then the effect shall be the transfer of all beneficial interest in the Shares to the Transferee by the creation of a trust in favour favor of the Transferee as beneficiary in which the Shares comprise the subject, and the Transferor is the trustee.

EFFECT OF LACK OF FORMALITY. It is agreed that should the envisaged transfer of shares fail to be effective due to a lack of formality (including but not limited to a failure to register the transfer correctly in the registers of the company or due to a refusal by the directors of the company whose Shares are being transferred) then the effect shall be the transfer of all beneficial interest in the Shares to the Transferee by the creation of a trust in favour favor of the Transferee as beneficiary in which the Shares comprise the subject, and the Transferor is the trustee.