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Lien on shares

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Company-A is a waste disposal company. Company-B hired company-A to dispose their waste. Company-B have also invested in the shares of Company-A. Company-A agreed to dispose the waste and completed the task. Company-B incurred huge losses and liquidated. All the secured creditors and debentureholders' claims were settled and there was no cash or property left to pay the fees to Company-A(for the job of waste disposal). Can company-A have a lien on the shares invested by company-B in them?

Replies (1)

Refer provision  in Articles of Association  of the company.  Article 9 of  model Articles  provided in the Act.  It  provides that lien is possible  only in partly paid-up shares.

 

 


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