Collateral

  • Protective pledge of shares and securities: procedure, effects and conversion

    By Charlotte GAUCHON
    29 June 2025
    When a creditor seeks to secure the recovery of its debt, the rights that its debtor holds in a company are a prime target. The protective pledge of company shares or securities is an effective procedure for 'freezing' these assets pending a court ruling. This measure, which forms part of the broader framework of judicial sureties, offers a solid guarantee to creditors. However, its implementation is technical and is subject to precise formalities. It requires a detailed understanding of the rules governing shareholders' rights to avoid pitfalls. For any problems relating to these guarantees, the assistance of a lawyer is invaluable in navigating between procedural imperatives and defending your interests. Protective pledges: shares and securities Before taking such a step, it is essential to correctly identify the nature of the rights held by the shareholder.
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