What is mean by company has a lien on share
This query is : Open
naresh kumar
(Querist)
11 August 2011
dear sir,
I want to know the meaning of "company has a lien on share "
can you explain it with example.
thanking you
I want to know the meaning of "company has a lien on share "
can you explain it with example.
thanking you
Roopesh.V.Naik
(Expert)
11 August 2011
Dear Friend,
Meaning of the term lien " the right to take another's property if a particular obligation is not discharged"
From companies point of view, If a shareholder indebted to the company, he cannot dispose of the shares without first paying the debts of the company. The right of the company on shares is called lien on shares.
However company can exercise its right only if provided in Articles of Association
Meaning of the term lien " the right to take another's property if a particular obligation is not discharged"
From companies point of view, If a shareholder indebted to the company, he cannot dispose of the shares without first paying the debts of the company. The right of the company on shares is called lien on shares.
However company can exercise its right only if provided in Articles of Association
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