Appropriation of financial collateral: relief available
The Privy Council recently considered whether a security provider whose collateral had been appropriated as allowed by the Financial Collateral Arrangements (No.2) Regulations 2003 was entitled to relief from forfeiture.
Back in 2009 the Privy Council considered whether Alfa Telecom, which had taken a charge over shares in two Cukurova companies to secure liabilities under a loan agreement, could appropriate those shares under the security without first becoming registered holder of them in the books of the relevant companies.
On that occasion Alfa Telecom succeeded in persuading the Privy Council that appropriation of shares under security to which the Regulations applied only required some “overt act” on the part of the security holder, such as issuing notices telling the relevant chargor the shares were to be taken. The Privy Council decided that appropriation did not require the secured creditor to persuade potentially hostile directors to actually register the secured creditor as the holder of the relevant shares…
If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.
Click on the link above to download the briefing.
News from Taylor Wessing
Briefings from Taylor Wessing
New rules will apply to most businesses selling to consumers in the EU, including to those selling online from outside the EU, from no later than 13 June 2014.
Last year — 2013 — was a considerably less eventful year for German gambling law than 2012, which saw significant reforms within the industry.
Analysis from The Lawyer
The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world
Financial disputes are starting to dominate the English courts as the long-awaited fallout from the downturn finally comes to town