Quasi-security

Quasi-security

Quasi security is the common term describing the various ways of enhancing a creditor's protection against a debtor without creating a security interest.

Third party support

A third party may agree to provide financial support to a debtor in favour of the creditor by providing:

•
a guarantee—an undertaking given by one party (the guarantor) to another in respect of a debtor performing its obligations to ensure that such obligations are performed (whether by the debtor or the guarantor) if the debtor fails to perform them. A guarantee supports a primary obligation between two parties other than the guarantor but is itself a secondary obligation; so if the underlying contract is void, set aside or the debtor is discharged from its obligations then the guarantor's obligations fall away (see Practice Notes: Guarantees, Guarantees—commercial benefit and Formalities for creating a guarantee)
•
an indemnity—similar to a guarantee in that one party undertakes to be responsible for the obligations and liabilities of a third party should such third party fail to perform its obligations. However, it provides a creditor with more protection than a guarantee as it is a primary obligation

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Corporate News

European Parliament set to vote on sustainability omnibus

The European Parliament’s Legal Affairs Committee (JURI) has confirmed that it will vote on the proposed sustainability omnibus package (Omnibus I) on Monday 13 October. The package is comprised of major proposed revisions to the Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence, with the aim of simplifying existing sustainability reporting and due diligence requirements for companies by reducing administrative burdens and improving competitiveness. The European Parliament is expected to confirm its position in a vote in the full plenary in the week commencing 20 October, after which trilogue negotiations will begin. The Danish Presidency has indicated that it aims to conclude negotiations on the omnibus before the end of the year.

HM Treasury establishes Dematerialisation Market Action Taskforce to reform UK shareholding framework

HM Treasury (HMT) has established the Dematerialisation Market Action Taskforce (DEMAT), chaired by Mark Austin CBE, to advance reforms to the UK’s shareholding framework, following recommendations from the Digitisation Taskforce’s final report, published on 15 July 2025. HMT has accepted the report’s three-step approach to remove paper share certificates and transition to a fully intermediated shareholding system. Step 1 involves replacing certificated share registers with digitised registers before the end of 2027, Step 2 focuses on improving the intermediated system during the current Parliamentary term and Step 3 will transition all shares from digitised registers into the intermediated system. DEMAT is required to report back by summer 2026 with a recommended go-live date for Step 1 and an implementation plan, while collaborating with market participants to prepare for Steps 2 and 3. HMT has also published DEMAT’s terms of reference setting out its objectives and governance structure.

Corporate weekly highlights—9 October 2025

This week's edition of Corporate weekly highlights includes: updated government guidance on information sharing measures under the Economic Crime and Corporate Transparency Act 2023, an ISS-Corporate review of the 2025 UK AGM season highlighting growing scrutiny of executive pay and the implementation of new remuneration guidance, and a YouGov survey commissioned by E3G revealing strong EU business support for corporate sustainability and due diligence rules. It also covers the recent case of Spill Bidco Ltd v Wishart which considered whether a former director breached reasonable restrictive covenants and fiduciary duties by providing financial and operational support to competing businesses.

CCRC directs full inspection of casework by HMCPSI

The Criminal Cases Review Commission (CCRC) Chair Dame Vera Baird KC has directed His Majesty's Crown Prosecution Service Inspectorate (HMCPSI) to conduct a comprehensive inspection of the commission's entire casework system, commencing January 2026. The inspection forms part of Baird's broader review of the CCRC for the Secretary of State for Justice, aimed at providing assurance over the commission's processes for reviewing suspected miscarriages of justice.