Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Shares definition

What does Shares mean? In company law practice, a share is a unit of a member’s interest in a company, carrying the rights and obligations attached to its class (for example, voting, dividends and return of capital on a winding up). The Companies Act 2006 simply states that a share is a share in a company’s share capital; the Irish Companies Act 2014 adopts a broadly equivalent approach. Usage and effect are consistent across England & Wales, Scotland, Northern Ireland and Ireland. A company’s share capital comprises the number of shares it allots and issues to investors on or after incorporation. Those...

Security over CREST-held uncertificated shares: legal and equitable mortgages (escrow), documentation, perfection, priority, enforcement, and Takeover Code/disclosure considerations

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Practice notes

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In commercial finance, Shares are often pledged as security for a loan. Practice Note: Taking security over shares sets out the general approach to securing interests over shares. This Practice Note concentrates on issues specific to security over shares held in CREST, the UK’s clearing and settlement system. It explains:

the characteristics of registered shares and the distinction between certificated and uncertificated shares
what CREST is and the ways shares can be held within CREST
methods of taking security over shares held in CREST
specific issues arising when securing shares in CREST and key points for documenting that security
perfection and Priority considerations for CREST share security
how to enforce security over CREST-held shares

Where a settlement bank takes security over CREST-held shares, different considerations apply; these fall outside the scope of this Practice Note. For more information, see commentary: CREST payments: Tolley’s Company Law Service [C8041].

Types of shares

Registered shares

With bearer shares abolished, all shares are now registered. Ownership of a registered share involves two stages:

first, the

...

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Web page updated on 21/05/2026

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