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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 31768
Experience:  Over 5 years in practice
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When you sell your company and a share pledge is in place against

Customer Question

When you sell your company and a share pledge is in place against the buyersto protect your earn out. What happens if they then sell on the company without your knowing and then the bank takes a charge over the shares. Surely this means the shares are pledged twice
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is AJ and I will assist you.

The only way this is possible is if the buyer (who then subsequently sells) discharged the charge over the shares - this could only be done with your signature which would be fraud potentially.

Is your pledge definitely in the form of a charge?

I look forward to hearing from you.

Kind regards

AJ