Document background
The Share Pledge Agreement is a vital security document used in Danish financing transactions where shares are provided as collateral for obligations such as loans or other financial commitments. It is commonly used in acquisition financing, corporate restructurings, and general corporate financing arrangements. The document must comply with Danish law requirements regarding security interests over shares, including specific perfection requirements through notification to the target company and, where applicable, registration in relevant registers. The agreement details the scope of the pledge, mechanisms for enforcement, treatment of shareholder rights during the security period, and procedures for dealing with dividends and other corporate actions. It is particularly important in cross-border transactions where Danish shares are being pledged, requiring careful consideration of both Danish mandatory law provisions and international best practices.
