“The Modernization of the Legal Framework for the Establishment of Share Pledge Under New Law”

Papapolitis & Papapolitis was delighted to be featured in the Business Law Insights 2025 special edition, published with leading newspaper Kathimerini in collaboration with NOMIKI BIBLIOTHIKI .

Maria Karabella, Partner and member of our Banking & Finance team, authored an article titled “The Modernization of the Legal Framework for the Establishment of Share Pledge Under New Law.”

Key Highlights from the article:

A Digital Leap Forward – Law 5123/2024 introduces a unified Electronic Pledge Registry, modernizing and streamlining the process for the perfection of the pledge over registered shares and other corporate holdings.

Simpliflied & Efficient – The reform replaces outdated notification procedures with electronic documentation, cutting down on bureaucracy and accelerating transaction processes.

Alignment with International Best Practices – The new framework attempts to decouple the share pledge from the negotiable character of the shares bringing Greek   regulations in line with global best practices.

Challenges & Concerns – While a step in the right direction, concerns remain over the potential impact of registration fees on the broader adoption of this system in financing transactions.

This legislative reform represents a significant step towards greater efficiency, transparency and digital modernization in Grece’s capital markets and financial transactions landscape.

 

  • You can download the article here

 

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