Definition of shares in a charge did not include rights under Shareholder Loan Agreement

In Fons HF (in liquidation) v Corporal Ltd & anr [2013] EWHC 1801 (Ch), the High Court ruled that the true construction of the standard definition of shares in a charge document did not extend to rights under a shareholder loan agreement.

Such agreements were neither ‘other securities’ nor ‘debentures’ within the definition. This decision emphasises the importance of precise drafting to ensure that charge documents clearly identify all of the property caught by them and highlights the pitfalls for a lending party if this is not the case.

The claimant Fons HF (Fons) purchased shares in the first defendant Corporal Ltd (Corporal). In October 2007 and February 2008 respectively, Fons provided funding to Corporal under two shareholder loan agreements (SLAs)…

If you are registered and logged in to the site, click on the link below to read the rest of the Allen & Overy briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Analysis from The Lawyer

  • Panel reviews

    Panel reviews 2014: The chosen ones

    Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all

  • training

    Accutrainee: Revolution postponed

    At the time of its launch Accutrainee was described as a revolutionary change to the training model. Has it proved to be so? Not really.

View more analysis from The Lawyer


One Bishops Square
E1 6AD

Turnover (£m): 1,234.30
No. of lawyers: 2,194 (UK 200)
Jurisdiction: UK
No. of offices: 11
No. of qualified lawyers: 369 (International 50)
No. of partners: 81