Attachment of shares: the need of the double recording, on the title and on the shareholders’ register

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Corporate, Finance e Capital Market

Civil section 1 of the Italian Supreme Court, by its judgement no. 1588 of January 20th 2017, adopted a position in relation to the attachment of shares for companies limited by shares. The Court stated that, for the purpose of the valid creation of the constraint and its effectiveness in respect of third parties, it is necessary to record such constraint both on the title and on the shareholders’ register.

In the present case, the shares owned by a shareholder in a company limited by shares were subject to attachment proceeding. Nonetheless, the constraint on the attached shares was not recorded on the title; instead, the shares were transferred by endorsement to a third party who, in his turn, transferred them to another party.

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