A donor had completed all the steps to give some shares to the donee, but the donee had not yet registered his title, which was necessary before the law would recognise the transfer. In between the donor completing his steps and the donee registering, some dividends accrued to the shares and the question was who would get them. Although generally “equity will not perfect an imperfect gift” so that the gift wouldn’t be viewed as complete until registration, there is an exception where the donee has done everything in his power to complete legal transfer. Therefore the court held that the gift was taken to be held on (constructive) trust by the donor for the donee, after the donor had taken all the steps required of him, and therefore the dividends went to the donee.
