C - Charge on shares
11/3/13
CLACK v WRIGLEYS SOLICITORS LLP [2013] EWHC 413 (Ch)
Solicitors retained to prepare a loan agreement and charge on shares as security, were negligent in failing to obtain the share certificate and to ensure the shares were registered to the charger. A legal charge on shares is incomplete until the shares are registered in the chargor’s name. In the absence of evidence that the chargor had given value for the shares, it could not be said that the chargor had an equitable interest because equity will not aid a volunteer. It was doubtful that the existence of a transfer signed by the chargor was sufficient to evidence the security, but in any event the company could not lawfully gift shares to a volunteer.