The Legal regulation to prohibit the disposal of pledged shares

Abstract

The legislator has gradually sought to develop mechanisms for pledging movable values in general, and shares of joint stock companies in particular, responding to the needs of the economy, and enables its owners to benefit from their economic value, by allowing them to borrow loans by pledging them. But the legislator arranged several effects on pledging shares, perhaps the most important of which is the prohibition of disposing of the pledged shares, and it seems that the legislator intended by this prohibition to preserve the rights of the pledgee, by paralyzing the ability of the pledger to dispose of the pledged to the detriment of the pledgee. And stopped there without providing explanations about the arising and scope of this prohibition. Especially since the adoption of this prohibition on its full extent Inconsistent with the nature of this pledge subject, its sensitivity to trading fluctuations, and the surrounding conditions, and leads to the exclusion of many provisions of the general rules of pledge, thus depriving the pledger of benefiting from the full credit value of his shares, as it may harm the Even the pledgee. Therefore, It was necessary to address how the prohibition on disposing of pledged shares may arise, whether listed or not on the market, in addition to discussing the effects and dimensions of this prohibition