The Short Version
A 'company objection' arises after a share transfer has already passed the broker-to-broker delivery stage and been lodged with the company (or its Registrar and Transfer Agent) for registration — but the company itself finds a defect and refuses to register the transfer. Typical reasons include a signature mismatch against the company's own records, an incomplete or improperly stamped transfer deed, or a mismatch between the transferor's name and the company's register. The company returns the documents with an objection memo explaining the defect, which must then be corrected and resubmitted.
Explain It Like I'm 10
Imagine you've already mailed in a fully-completed form to change the name on a library card, only for the library to write back saying 'the signature on this form doesn't match what we have on file for you — please fix and resend.' That's a company objection: the paperwork made it all the way to the actual record-keeper, but they've flagged something that needs correcting before they'll officially update their books.
Step-by-Step Example
- 1 A buyer successfully receives a physical share certificate and transfer deed through their broker (it passed bad-delivery checks).
- 2 The buyer's broker lodges the documents directly with the company's registrar to register the ownership change.
- 3 The registrar compares the transfer deed's signature against its own specimen signature records on file and finds a mismatch.
- 4 The registrar returns the documents along with a formal objection memo describing the exact defect.
- 5 The seller must provide a corrected, verified signature (or supporting documentation) before the registrar will register the transfer in the buyer's name.
Quick Recap
- ✓ Company objections happen at a later stage than bad delivery — after lodgement with the company, not between brokers.
- ✓ The objection memo specifies exactly what needs to be corrected before the transfer can be registered.
- ✓ Until the objection is resolved, the buyer isn't formally recorded as the registered owner in the company's records.
- ✓ Like bad delivery, this issue is now largely confined to older, physically held shares rather than dematerialized holdings.