Pledge of shares

If you as director-major shareholder (DGA) want to create more financial space and opportunities, then it may be an option to pledge shares. By pledging shares you give a so-called ‘lien’ to a lending party. Various formalities must be properly arranged for this. For example, the articles of association of the private limited company must allow the pledging of the shares.

It is advisable to first discuss your plans for pledging your shares with the notary. Meijer Notarissen can see in good time whether there is, for example, a blocking arrangement in your articles of association. Such a scheme prevents a pledge from selling your shares to a competitor. Our notaries can also see when the rights of the pledgee end. Sound advice and following the correct rules prevent you being held personally liable as a DGA.

Notarial deed

When all formalities are properly arranged and all conditions are met, the notarial deed can be drawn up and the pledge of your shares will be recorded in the shareholders register of your private company.