Kansas Statutes 17-4909. Nonliability of third persons
Terms Used In Kansas Statutes 17-4909
- Assignment: includes any written stock power, bond power, bill of sale, deed, declaration of trust, or other instrument of transfer. See Kansas Statutes 17-4903
- Corporation: means a private or public corporation, association or trust issuing a security. See Kansas Statutes 17-4903
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fiduciary: means an executor, administrator, trustee, guardian, committee, conservator, curator, tutor, custodian, nominee, receiver, assignee for benefit of creditors, partner, agent, officer of a corporation, public or private, public officer, or any other person acting in a fiduciary capacity for any person, trust or estate. See Kansas Statutes 17-4903
- Fiduciary: A trustee, executor, or administrator.
- Person: includes an individual, a corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, two or more persons having a joint or common interest, or any other legal or commercial entity. See Kansas Statutes 17-4903
- Security: includes any share of stock, bond, debenture, note, or other security issued by a corporation which is registered as to ownership on the books of the corporation. See Kansas Statutes 17-4903
- Transfer: means a change on the books of a corporation in the registered ownership of a security. See Kansas Statutes 17-4903
- Transfer agent: means a person employed or authorized by a corporation to transfer securities issued by the corporation. See Kansas Statutes 17-4903
(a) No person who participates in the acquisition, disposition, assignment or transfer of a security by or to a fiduciary, including a person who guarantees the signature of the fiduciary, is liable for participation in any breach of fiduciary duty by reason of failure to inquire whether the transaction involves a breach, unless it is shown that he acted with actual knowledge that the proceeds of the transaction were being or were to be used wrongfully for the individual benefit of the fiduciary, or that the transaction was otherwise in breach of duty.
(b) If a corporation or transfer agent makes a transfer pursuant to an assignment by a fiduciary, a person who guaranteed the signature of the fiduciary is not liable on the guarantee to any person to whom the corporation or transfer agent by reason of this act incurs no liability.
(c) This section does not impose any liability upon the corporation or its transfer agent.