Pledge of the company’s shares

  • Home
  • /
  • Pledge of the company’s shares

Article 79 of the new Company law permits the partner to transfer or pledge its share in the Company to another partner or to a third party. Such transfer or pledge shall be made in accordance with the terms of the Memorandum of Association of the Company under an official notarized document, in accordance with the provisions of this Law. Such transfer or pledge shall not be valid against the company or third parties until the date of its entry in the Commercial Register with the competent authority. In this case, either Partner can take the entire shares of the other Partner as “Pledge” (mortgage) in order to secure the investment, if the investment is 100% made by one Partner.