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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3655
Experience:  Solicitors 2 years plus PQE
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A UK company as a charge on my house fro £250,000 I own

Resolved Question:

A UK company as a charge on my house fro £250,000
I own 25%of shares in an insurance company valued at USD 3,000,000
The Uk company are happy to release the charge of my house for a percentage of my shares in the insurance with a value pegged at USD 500,000
I cannot transfer my shares at present a due diligence is currently on the way with a view that 51% of the insurance company will be sold.
Can I do this via a contract sale with a deed of trust attaching
Submitted: 1 year ago.
Category: Law
Customer: replied 1 year ago.
I want to enter into a contract with the UK to sales a percentage of my shares in exchange to release the charge.Because they know we are looking to sell 51% share of the insurance company.They want a deed of trust which i assume the role over their stake in the company with the beneficiary themselves
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Is it an option to give the company a charge on the beneficial interest in the shares? This would be less complicated than transferring ownership in the beneficial or legal ownership of the shares?
Kind regards
AJ
Customer: replied 1 year ago.
HI AJIf I understand youThe UK Company will enter into an agreement to release my charge in exchange for a % of the shares I hold in an Insurance
Company and to secure their rights I will give them a charge for the amount owing plus a margin equalling their beneficial interest.
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. Instead of actually transferring any ownership in the shares you give them a legal charge for the debt (plus their margin - the margin could be valid consideration for changing the security). The charge is the same type of security as a charge over a house - if you give them a blank undated stock transfer deed and if you default they can take ownership of the shares. The advantage of the charge over actually transferring ownership of a percentage in the first instance is:(i) You do not need to worry about obtaining the insurance company's permission to make the share transfer;(ii) You can stipulate that charge and underlying debt obligation will only be repaid from the proceeds of the share sale.
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