Share Trading and the 'Clog' on the Equity of Redemption.
Australian Law Journal, 83 237-241, 2009
6 Pages Posted: 4 Jun 2015
Date Written: 2009
Lending on the security of shares has featured prominently in recent court cases. This article explores, in the light of recent authority, the position with respect to clogs on the equity of redemption and the broader question of how properly to characterise the transaction – is it a mortgage, an out and out transfer, or some form of bailment such as a classical mutuum? The last possibility has not been canvassed in the authority but would seem to be the most appropriate description of what occurs – what consequences would flow from such a characterisation?
JEL Classification: k00
Suggested Citation: Suggested Citation