https://www.taxtmi.com/caselaws?id=97415 Articles of association can create a first charge and paramount lien over a member's shares for debts and liabilities owed to the bank, and that lien remains legally effective even if the shares are sold in the open market, fully paid up, or not held in the bank's custody. Priority is determined against persons claiming through the shareholder after notice; on the facts, the bank did not press priority for the overdraft component because it arose after notice. For the remaining two heads of claim, the bank was entitled to enforce its contractual lien under the articles and that lien prevailed over the third defendant's competing claim to that extent. en-us Fri, 15 Jun 1956 00:00:00 +0530 Mon, 16 Jan 2012 16:02:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97415 Articles of association can create a first charge and paramount lien over a member's shares for debts and liabilities owed to the bank, and that lien remains legally effective even if the shares are sold in the open market, fully paid up, or not held in the bank's custody. Priority is determined against persons claiming through the shareholder after notice; on the facts, the bank did not press priority for the overdraft component because it arose after notice. For the remaining two heads of claim, the bank was entitled to enforce its contractual lien under the articles and that lien prevailed over the third defendant's competing claim to that extent. Case-Laws Companies Law Fri, 15 Jun 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97415