A transfer of the equitable interest in shares in breach of article 8(B) would nonetheless be effective.
Vaisey J said: There is, undoubtedly, a basic principle that a charging order only operates to charge the beneficial interest of the person against whom the order is made, and that it is not possible, for instance, to obtain an effective charging order over shares where the person against whom the order is made holds them as a bare trustee. The charging order affects only such interest, and so much of the property affected, as the person whose property is purported to be affected could himself validly charge. Jeffreys v Reynolds would seem superficially, to throw some doubt on that general basic proposition, but I think that the only effect of that decision is that the true owner of shares cannot, as a matter of procedure, discharge the charging order after it has been made absolute, and his remedy for asserting and establishing his true rights must be of some other character.
Judges:
Vaisey J
Citations:
[1951] 1 All ER 22
Jurisdiction:
England and Wales
Citing:
Applied – Gill v The Continental Union Gas Company Limited 1872
In an action under section 15 against a company for permitting the transfer of shares after notice of a charging order nisi, and before the making of it absolute, it is a good answer to show that the judgment debtor in whose name the shares stood . .
Lists of cited by and citing cases may be incomplete.
Equity, Company
Updated: 30 November 2022; Ref: scu.183424
