Pledge Of Shares Agreement Template for Denmark

A Pledge of Shares Agreement is a crucial security document used in financial transactions where shares are provided as collateral for loans or other obligations. Under Danish law, this agreement must comply with specific requirements for creating and perfecting security interests over shares, including registration and notification obligations. The document is commonly used in acquisition financing, corporate lending, and restructuring scenarios, where lenders require security over company shares. The agreement details the pledge arrangement, including the scope of pledged shares, voting rights, dividend arrangements, and enforcement procedures. It must align with Danish corporate law requirements, particularly the Danish Companies Act (Selskabsloven) and financial collateral regulations. The document is essential for both domestic Danish transactions and cross-border financing arrangements where Danish companies or shares are involved.

1. Parties: Identification of the Pledgor(s) and Pledgee(s) with full legal names and registration details

2. Background: Context of the pledge agreement, typically referencing any underlying facility or main agreement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules used throughout the agreement

4. Pledge and Security Interest: Core provisions establishing the pledge over the shares and scope of security interest

5. Perfection Requirements: Steps required to perfect the security interest under Danish law, including registration and notification requirements

6. Representations and Warranties: Pledgor's confirmations regarding ownership, authority, and absence of encumbrances

7. Continuing Security: Provisions establishing the pledge as continuing security until full discharge

8. Voting Rights and Dividends: Arrangements for exercise of voting rights and receipt of dividends pre-enforcement

9. Pledgor Covenants: Ongoing obligations of the Pledgor regarding the pledged shares

10. Enforcement: Circumstances and procedures for enforcing the pledge, compliant with Danish law

11. Power of Attorney: Authority granted to Pledgee to perfect or enforce the security interest

12. Notices: Requirements and procedures for giving notices under the agreement

13. Governing Law and Jurisdiction: Confirmation of Danish law governance and jurisdiction

14. Miscellaneous: Standard boilerplate provisions including severability, amendments, etc.