Reading through a shareholder agreement, I encountered the following section:
Subject to a special resolution of the shareholders to the contrary, no shareholder shall allow any shares held by it in the company to be encumbered.
The document includes a fairly comprehensive 'definitions' section, but "encumber" is not one of the terms defined. The only reference to the term is as part of the entry for "dispose", which states:
Dispose means to grant options or rights of pre-emption over, sell, transfer, assign, part with the benefit of, declare a trust of, encumber or deal with;
What actions actually encumber someone's shareholding? And is it correct that no special resolution is required to do any of "grant options or rights of pre-emption over, sell, transfer, assign, part with the benefit of, declare a trust of", since those are all listed separately from "encumber"?