Why do promoters pledged their shares?

Usually, financial institutions and banks ask companies to offer promoters' shares as collateral for the loan. This is pledging of promoter's shares. Typically, companies opt for this route when all other sources of raising funds seem improbable. Hence, it is a sign of possible financial duress in the company.

US Legal Forms
Localized Forms
California
Santa Clara
Stock Pledge Agreement by Portola Company IV LLC for Portola...

Santa Clara California Stock Pledge Agreement by Portola Company IV LLC for Portola Packaging, Inc.

Name: Santa Clara California Stock Pledge Agreement by Portola Company IV LLC for Portola Packaging, Inc.
Brand: US Legal Forms
Rating: 4.58 (401 reviews)

Category:

Corporations - Public - Stocks

State:

Multi-State

County:

Santa Clara

Control #:

US-EG-9024

Format:

Instant download

Description

Amended and Restated Stock Pledge Agreement between Portola Company IV, LLC in favor of Portola Packaging, Inc. dated October 4, 1999. 11 pages

Pre-Move Notice of Proposed Change of Pers...

View this form

Resume for Zoologist

View this form

Assessment of Penalty Fees

View this form

How to fill out Santa Clara California Stock Pledge Agreement By Portola Company IV LLC For Portola Packaging, Inc.?

If you need to get a reliable legal document supplier to find the Santa Clara Stock Pledge Agreement by Portola Company IV LLC for Portola Packaging, Inc., consider US Legal Forms. Whether you need to start your LLC business or take care of your asset distribution, we got you covered. You don't need to be knowledgeable about in law to find and download the appropriate template.

You can select from over 85,000 forms categorized by state/county and case.
The intuitive interface, number of supporting resources, and dedicated support team make it simple to locate and execute different documents.
US Legal Forms is a reliable service offering legal forms to millions of customers since 1997.

Simply select to search or browse Santa Clara Stock Pledge Agreement by Portola Company IV LLC for Portola Packaging, Inc., either by a keyword or by the state/county the form is created for. After locating necessary template, you can log in and download it or retain it in the My Forms tab.

Don't have an account? It's effortless to get started! Simply locate the Santa Clara Stock Pledge Agreement by Portola Company IV LLC for Portola Packaging, Inc. template and check the form's preview and description (if available). If you're comfortable with the template’s legalese, go ahead and click Buy now. Create an account and choose a subscription plan. The template will be immediately available for download once the payment is completed. Now you can execute the form.

Taking care of your law-related affairs doesn’t have to be expensive or time-consuming. US Legal Forms is here to demonstrate it. Our rich variety of legal forms makes this experience less expensive and more affordable. Create your first business, organize your advance care planning, draft a real estate agreement, or execute the Santa Clara Stock Pledge Agreement by Portola Company IV LLC for Portola Packaging, Inc. - all from the convenience of your sofa.

Join US Legal Forms now!

Form Rating

4.58

Satisfied(401)

Form popularity

FAQ

Pledge is used to create a charge over movable properties whereas Mortgage is used in case of immovable properties. In case of pledge, the goods are kept with the lender, whereas mortgaged properties are retained with the borrower.

An agreement typically used to create a security interest in equity interests (including capital stock, LLC interests, and partnership interests) and promissory notes.

In this post, I will address the issue under the general principals of contract law. A charitable pledge is enforceable if it is a legally binding contract. A legally binding contract exists when there is agreement between the parties and there has been consideration given in exchange for the pledge.

Usually, financial institutions and banks ask companies to offer promoters' shares as collateral for the loan. This is pledging of promoter's shares. Typically, companies opt for this route when all other sources of raising funds seem improbable. Hence, it is a sign of possible financial duress in the company.

Pledge of Stock. Pledgor hereby pledges, grants a security interest in, assigns, transfers and delivers unto Secured Party and its successors and assigns the Pledged Shares as collateral security for the payment and performance by Pledgor of the Obligations (as defined under Section 2 hereof).

How to pledge shares? The promoter has to initiate a request for pledging shares using the trading terminal. Once the request is received, the trading terminal sends the request to NSDL/CDSL for confirmation. NSDL/CDSL authenticates the request using email/mobile authentication for PAN/BOID.

Pledge and Control Agreement means a pledge and control agreement in form and substance reasonably satisfactory to the Arrangers to be entered into by and among the Borrower, the trustee under the Senior Notes and a securities intermediary.

By pledging shares, companies borrow loans to meet their operational requirements. It is used to meet different needs like funding other ventures, working capital requirements, paying debts, etc. If a significant portion of the shares held by promotors is pledged, it can adversely affect shareholder's value.

Definition: Pledging of shares is one of the options that the promoters of companies use to secure loans to meet working capital requirement, personal needs and fund other ventures or acquisitions. A promoter shareholding in a company is used as collateral to avail a loan.

Intercompany Loan Pledge Agreement means that certain agreement between and among the Debtor, the Trustee and the Collateral Agent, pursuant to which the Debtor pledged its rights and interests in that certain intercompany loan from Plan Sponsor to secure its obligations under the Senior Secured Notes. Sample 1.

Interesting Questions

More info

The information in this Prospectus is not complete and may be changed. The information in this prospectus is not complete and may be changed.COM) SAN DIEGOCreate a CoBranded eCommerce Marketplace for Home Healthcare Procurement (BW0081 ) (CACOPPERCOM) SANTA CLARA, Calif. Read this Disclosure Document and all accompanying agreements carefully. The underwriters expect to deliver the shares against payment in New York, New York on April 16, 2018. Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended. An international law firm that represents clients in business-related litigation, transactions, and regulatory matters. And Bank of America, N.A., as Collateral Agent (the "EB Mortgage Agreement"). The number of shares outstanding of the registrant's common stock as of February 22, 2010 was 445,131,939 shares. RELIEF TO GOLUB CAPITAL MARKETS LLC, AS AGENT, AND THE LENDERS.

Santa Clara California Stock Pledge Agreement by Portola Company IV LLC for Portola Packaging, Inc.

Description

Related forms

Viewed forms

How to fill out Santa Clara California Stock Pledge Agreement By Portola Company IV LLC For Portola Packaging, Inc.?

Show more info

Form Rating

Form popularity

FAQ

What is the purpose of a pledge or mortgage?

What is a pledge agreement?

What is the difference between a pledge and a contract?

Why do promoters pledged their shares?

Is a pledge of stock a transfer?

How do you pledge shares?

What is a pledge and control agreement?

What happens when you pledge shares?

Can shares of stocks be pledged?

What is a loan pledge agreement?

Interesting Questions

What is the Santa Clara Stock Pledge Agreement?

Why would Portola Company IV LLC pledge stock?

What does it mean to pledge stock?

How does the Santa Clara Stock Pledge Agreement protect Portola Packaging, Inc.727925?

What happens if Portola Company IV LLC fails to meet its financial obligations?

Can Portola Company IV LLC sell or transfer the pledged stock?

More info

Trusted and secure by over 3 million people of the world’s leading companies