lien on shares

Philip Sharfstein, a lawyer specializing in real estate matters, said the by-laws of co-ops typically provide that the corporation has the right to put a lien on shares for any indebtedness it is owed by a shareholder.

Hence it is only in respect of private companies that problems are still likely to arise when their articles provide, as they frequently do, that 'the company shall have a first and paramount lien on shares, whether or not fully-paid, registered in the name of a person indebted or under any liability to the company.'