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What does Title to Shares cover?

Insurer Surety Bonds offers you protection in the form of Title to Share, for the purchase of shares and good standing of the seller companies. We regularly insure the ownership of shares, even where there is no real estate involved. We also insure the following problems, even where they are known about in advance:

  • The seller may not be the legal and or beneficial owner of all of the shares

  • The shares may not be free from mortgage, charge, or encumbrance

  • The company being acquired is not the legal and or beneficial owner of all of the shares in the company in whom title to the relevant real estate is vested or is registered at the relevant land register

  • Title to shares may be defective due to documents not being properly registered, signed, completed, and or executed

  • A third party claims better legal ownership to the shares

  • A seller used a power of attorney to transfer the shares and that document is shown to be legally defective or the person giving power of attorney did not have the mental capacity to give it or had revoked it before completion

The seller may not be the legal and or beneficial owner of all of the shares in relevant subsidiaries

We require the following to provide terms for missing Share Certificates? 

There is no specific form but we would require the following information:

  • Name of Company, shareholder, number of shares, and approximate valuation.

  • When the Share Certificate(s) were lost and the circumstances.

  • Has the shareholder sought replacement Share Certs from the company?

  • Confirmation that the Share Certs have not been pledged / the Shares have not been given as security to any bank/third party by the Shareholder.

  • Are the shares being sold?

Our team is experienced in processing and securing Title Indemnity Insurance and Title to Shares policy and would be happy to talk you through your requirements and the process. Contact our team to see how we can help you.

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