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Locking of a block of shares

Locking of a block of shares

Locking of a block of shares means a pledged block of shares is blocked so it cannot be transferred.

What is locking of a block of shares?

Locking of a block of shares (Swedish: låsning av aktiepost), sometimes called locking for a pledge, means that a block of shares is blocked from transfer. When a pledge is registered in NVR, the block concerned is locked so that a transfer of the shares cannot be completed until the pledge has been removed.

 

Why is the block of shares locked?

The lock makes the pledge visible in the share ledger and prevents the shares from changing hands by mistake. It does not replace the requirements for third-party protection. The pledge must still be perfected, for example through denuntiation, to be valid against third parties.

Learn more about the digital share ledger
Henrik Kristensen, NVR
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Related terms

Pledge of shares

A pledge of shares means shares are provided as security for a debt, often a loan.

Block of shares

A block of shares is a consecutive series of share numbers held by the same owner with the same history.

Notice of pledge (denuntiation)

A notice of pledge (denuntiation) is a notice that gives the pledgee protection against third parties.

Third-party protection (perfection)

Third-party protection means that a right to property, such as shares, also applies against third parties.