Pledge Of Shares Agreement

Pledge Of Shares Agreement Template for Germany

Create a bespoke document in minutes, or upload and review your own.

4.6 / 5

4.8 / 5

Let's create your Pledge Of Shares Agreement

1. Select your governing law and document type:

2. Enter your key requirements:

3. Create your document to edit, review or download

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

"I need a German law Pledge of Shares Agreement for a bilateral facility where a GmbH shareholder is pledging 100% of their shares to a local bank as security for a €5 million loan to be drawn by March 2025."

Document background

The Pledge of Shares Agreement is a crucial security document in German corporate finance transactions, typically used in loan facilities, acquisition financing, or corporate restructurings. It enables shareholders to provide security over their shares while retaining ownership until a default occurs. The agreement must be carefully structured to comply with German legal requirements, particularly regarding perfection and enforcement. The document specifies the pledged shares, secured obligations, voting rights, dividend arrangements, and enforcement procedures. Under German law, share pledges must be properly documented and registered in the company's share register (for AGs) or notified to the company (for GmbHs). The agreement is particularly important in financing transactions where lenders require security over the borrower's or guarantor's shares.

Suggested Sections

1. Parties: Identification of the Pledgor(s) and Pledgee(s), including full legal names, registration details, and addresses

2. Background: Context of the pledge agreement, including reference to any underlying facility or security agreements

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including German legal terminology where relevant

4. Pledge of Shares: Core provisions creating the pledge over the shares, including exact description of pledged shares and compliance with German law requirements

5. Secured Obligations: Definition and scope of the obligations secured by the share pledge

6. Perfection Requirements: Steps required to perfect the pledge under German law, including registration and notification requirements

7. Representations and Warranties: Pledgor's confirmations regarding ownership, authority, and absence of encumbrances

8. Dividends and Voting Rights: Treatment of dividends and exercise of voting rights before and after enforcement

9. Covenants: Pledgor's ongoing obligations regarding the pledged shares

10. Enforcement: Circumstances and procedures for enforcing the pledge in accordance with German law

11. Further Assurance: Obligations to execute additional documents and take necessary steps to maintain the pledge

12. Governing Law and Jurisdiction: Confirmation of German law governance and jurisdiction of German courts

Optional Sections

1. Security Agent Provisions: Required when a security agent holds the pledge on behalf of multiple secured parties

2. Parallel Debt: May be needed in syndicated arrangements to create a direct claim for the security agent

3. Share Transfer Restrictions: Required when there are specific restrictions on share transfers in the company's articles

4. Multiple Pledgors: Additional provisions needed when shares are pledged by multiple parties

5. Different Share Classes: Special provisions for different types of shares with varying rights

6. Future Shares: Provisions for automatically extending the pledge to future share issuances

7. Bank Account Pledge: Additional provisions when dividend accounts are also being pledged

8. Power of Attorney: Specific powers of attorney for enforcement or administration of the pledge

Suggested Schedules

1. Schedule 1 - Details of the Shares: Detailed description of pledged shares including share numbers, certificates, and shareholding percentage

2. Schedule 2 - Form of Notice to the Company: Template notice informing the company of the share pledge

3. Schedule 3 - Form of Acknowledgment: Template acknowledgment from the company regarding the pledge

4. Schedule 4 - Secured Obligations: Detailed description of the secured obligations if complex

5. Schedule 5 - Shareholders' Resolution: Form of shareholders' resolution approving the pledge if required

6. Schedule 6 - Registration Forms: Any required forms for registering the pledge in company books or public registers

7. Appendix A - Corporate Authorizations: Copies of relevant corporate approvals and authorizations

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Banking and Financial Services

Private Equity

Investment Banking

Corporate Finance

Legal Services

Manufacturing

Technology

Real Estate

Infrastructure

Energy

Healthcare

Retail

Telecommunications

Relevant Teams

Legal

Finance

Corporate Secretarial

Treasury

Compliance

Risk Management

Corporate Finance

Investment Management

Corporate Governance

Business Development

Relevant Roles

Legal Counsel

Corporate Lawyer

Finance Director

Chief Financial Officer

Investment Manager

Corporate Secretary

Compliance Officer

Transaction Manager

Security Trustee

Portfolio Manager

Risk Manager

Managing Director

Corporate Finance Manager

Treasury Manager

Private Equity Manager

Find the exact document you need

Security Interest Contract

A German law-governed agreement establishing security interests over assets to secure specified obligations, structured in accordance with German civil law requirements.

��������Ƶ

How ��������Ƶ reduced drafting time by 75% for a legal firm

Let's create your Pledge Of Shares Agreement

Authors

Alex Denne

Find the exact document you need

Security Interest Contract

Real Estate Security Agreement

Security Agreement For Promissory Note

Personal Property Security Agreement

Data Privacy Contract

Model Intercreditor Agreement

Note And Security Agreement

Consumer Security Agreement

Collateral Control Agreement

Membership Interest Pledge Agreement

Membership Interest Agreement

Lease Security Agreement

Account Control Agreement Collateral

Retail Installment Contract And Security Agreement

Personal Loan Contract With Collateral

Shareholder Agreement Transfer Of Shares

Third Party Collateral Agreement

Security Control Agreement

Key Holding Agreement

Reinsurance Security Agreement

Debenture Subscription Agreement

Title Transfer Collateral Agreement

Third Party Pledge Agreement

Commercial Security Agreement

Stock Pledge Agreement

Collateral Security Agreement

Receivables Pledge Agreement

Personal Data Protection Agreement

Master Security Agreement

Promissory Note And Security Agreement

Collateral Access Agreement

Convertible Note Agreement

Third Party Security Agreement

Pledge And Security Agreement

Security Purchase Agreement

Master Repurchase Agreement

Cross Collateral Agreement

Asset Pledge Agreement

Warrant Purchase Agreement

Pledge Of Shares Agreement

Overnight Reverse Repurchase Agreement

Loan Collateral Agreement

Film Investment Contract

Collateral Trust Agreement

Collateral Pledge Agreement

Share Charge Agreement

Security Trust Agreement

Reverse Repurchase Agreement

Negative Pledge Agreement

Security Lending Agreement

Cash Collateral Agreement

Deposit Control Agreement

Stock Repurchase Agreement

General Security Agreement

Download our whitepaper on the future of AI in Legal

�ұ�Ծ���’s Security Promise

Your documents are private:

Your documents are protected:

Organizational security

Innovation in privacy:

Want to know more?

Use Cases

��Ƶ

How ��Ƶ reduced drafting time by 75% for a legal firm

�ұ�Ծ��’s Security Promise