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Companies Law - Highlights / Catch Notes

Home Highlights September 2023 Year 2023 This

Deed of pledge of shares - voting right - The express terms of ...

Companies Law

September 9, 2023

Deed of pledge of shares - voting right - The express terms of the Deed of Pledge will prevail - In the present case the use of the pledged goods will include exercise of voting rights since the pledged goods are shares. Thus, the Pledge Deeds by including in its terms the exercise of voting rights of the Pledgee will neither be contrary to law nor lead to conversion nor would amount to mortgage of movables. - HC

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