What is mean by company has a lien on share


11 August 2011 dear sir,
I want to know the meaning of "company has a lien on share "

can you explain it with example.
thanking you

11 August 2011 Dear Friend,

Meaning of the term lien " the right to take another's property if a particular obligation is not discharged"

From companies point of view, If a shareholder indebted to the company, he cannot dispose of the shares without first paying the debts of the company. The right of the company on shares is called lien on shares.

However company can exercise its right only if provided in Articles of Association



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