https://www.taxtmi.com/caselaws?id=97171 A valid pledge over shares can arise by delivery of the scrips and signed transfer forms, even where the transfers are blank or defective, because possession alone may constitute the security. A company's articles may also create a contractual lien in favour of the company on a member's shares for debts owed to it, including liability under a guarantee. That lien has priority over an earlier pledge unless the company had notice of the pledge or waived the lien by an executed agreement or equivalent conduct. On the facts stated, the pledge was recognised, but the company's contractual lien ranked ahead of it. en-us Fri, 29 Feb 1952 00:00:00 +0530 Sat, 14 Jan 2012 12:33:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97171 A valid pledge over shares can arise by delivery of the scrips and signed transfer forms, even where the transfers are blank or defective, because possession alone may constitute the security. A company's articles may also create a contractual lien in favour of the company on a member's shares for debts owed to it, including liability under a guarantee. That lien has priority over an earlier pledge unless the company had notice of the pledge or waived the lien by an executed agreement or equivalent conduct. On the facts stated, the pledge was recognised, but the company's contractual lien ranked ahead of it. Case-Laws Companies Law Fri, 29 Feb 1952 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97171