A notice of pledge, known in Swedish as denuntiation, is a notice given to whoever holds the pledged property. In a pledge of shares, it is used when the pledge cannot be handed over, for example when no share certificates exist. The notice then goes to the company or the custodian of the certificates.
The purpose is to give the pledgee third-party protection, that is, protection against the pledgor's creditors. Where share certificates exist, this is achieved instead through delivery. The pledge should also be noted in the share ledger.
A pledge of shares means shares are provided as security for a debt, often a loan.
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Third-party protection means that a right to property, such as shares, also applies against third parties.
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Locking of a block of shares means a pledged block of shares is blocked so it cannot be transferred.
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