Finance Update — March 2014: share charge included security over shareholder loans

By Brian Cain

The Court of Appeal has held that the proper construction of a share charge meant the benefit of two unsecured shareholder loan agreements formed part of the security package created by the document.

F made two unsecured loans to C, one pursuant to a bilateral loan agreement and the other jointly with another lender. F subsequently granted a bank a legal charge over the shares it held in C. ‘Shares’ were defined as follows: ‘all shares, if any, specified in Schedule 1, and also all other stocks, shares, debentures, bonds, warrants, coupons or other securities now or in the future owned by the [F] in [C] from time to time or any in which it has an interest’.

The bank claimed that it had security not only over the particular shares F held in C but also over F’s interest in the two unsecured shareholder loans. At first instance, the High Court held that the two loans were not ‘debentures’ or ‘other securities’ for the purposes of the share security document…

Click on the link below to read the rest of the Taylor Wessing briefing.

Sign in or Register to continue reading this article

Sign in

Register

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.

Briefings from Taylor Wessing

View more briefings from Taylor Wessing

Analysis from The Lawyer

  • merger deal

    Corporate crunch time: who will triumph at The Lawyer Awards 2014?

    As the equity capital markets rocketed back into favour and global M&A saw at least a partial return to form, there have been some rich pickings for The Lawyer’s Corporate Team of the Year award shortlisted firms in 2014. 

  • singapore orchid

    Singapore: Cash course

    The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world

View more analysis from The Lawyer

Overview

5 New Street Square
London
EC4A 3TW
UK
http://www.taylorwessing.com

Turnover (£m): 241.20
No. of lawyers: 860 (UK 200)
Jurisdiction: UK
No. of offices: 4
No. of qualified lawyers: 67 (International 50)

Jobs