The Privy Council have decided (5 May 2009) that it is not necessary for the person taking security in the form of share charges to become the registered holder of the shares for there to be a valid appropriation within the meaning of “appropriation” in Directive 2002/47 and the Financial Collateral Arrangements (No.2) Regulations 2003. A pragmatic interpretation was required.
The case arose in the British Virgin Islands and Harney’s, solicitors, have issued a report on it. They comment: “The case is the first known judicial decision anywhere on the interpretation of the Regulations … [it draws] a definitive end to the vexed preliminary issue under British Virgin Islands law.”
1) Cukurova Finance International Ltd (2) Cukurova Holding As V Alfa Telecom Turkey Ltd[2009] UKPC 19 PC (BVI) (Lord Hope of Craighead, Lord Scott of Foscote, Lord Walker of GestingthorpeBaroness Hale of Richmond, Lord Mance) 5/5/2009
