Enforcing share security
Produced in partnership with Jonathan Akinluyi and Riccardo Alonzi of Skadden Arps Slate Meagher & Flom (UK) LLP
Enforcing share security

The following Restructuring & Insolvency guidance note Produced in partnership with Jonathan Akinluyi and Riccardo Alonzi of Skadden Arps Slate Meagher & Flom (UK) LLP provides comprehensive and up to date legal information covering:

  • Enforcing share security
  • Brexit impact
  • Forms of share security
  • Enforcement options
  • Enforcement in practice
  • Further considerations

This Practice Note summarises:

  1. the different forms of share security

  2. the main enforcement options open to security takers

  3. practical considerations for security takers in determining the appropriate enforcement mechanics and

  4. a number of further considerations for security takers depending on the context

Brexit impact

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. References to exit day in many Brexit SIs are to be read as reference to IP completion day (Implementation Period completion day, defined in clause 39 as 31 December 2020 at 11.00 pm) (unless that provision is expressly disapplied by the SI in question). For further details, see News Analysis: Brexit—impact of the Withdrawal Agreement and European Union (Withdrawal Agreement) Act 2020 for R&I lawyers and Brexit Bulletin—key updates, research tips and resources.

The Financial Markets and Insolvency (Amendment and Transitional Provision) (EU Exit) Regulations 2019, SI 2019/341 was made on 21 February 2019 to address the deficiencies which arise from the withdrawal of the UK from the EU by amending legislation. This legislation is partly in force from 22 February 2019 and fully in force on exit date (as defined in the European Union (Withdrawal) Act