American businesses, especially those whose securities are publicly traded on exchanges in the U.S. capital markets, know full well that their shareholding owners may sue them for mismanagement and also for failing to be frank about performance and/or risks. Adding to potential shareholder claims, among other things, are environmental pollution, sexual misconduct, and breaches of cybersecurity.» Read More
What effect does the Hague Securities Convention have on perfection by filing?
— Part Four of Four —
The Convention does not affect perfection of a lien by taking physical possession of the securities. However, the Convention may affect perfection of a lien by filing, including the place where the security interest or other lien implementation document must be filed. » Read More
Two things are required. First, the choice should be expressly made. If an express choice is not made, there are a series of fallback rules under the Convention, but clearly the far better approach is to make an express choice.» Read More
The cited provisions are choice-of-law provisions that select the governing law for the intermediary account agreement, which under the Hague Securities Convention will then also dictate the governing law for other issues regarding the securities, enumerated in Article 2(1) of the Convention, such as perfection of liens and priority of interests. » Read More