A Charge over shares is created in respect of shares held in a limited liability company which are offered as security for credit or loan facilities. It creates a charge over all dividends, interest and other rights attaching to the shares offered/pledged.

The parties to a charge over shares are the borrower, the pledgor being the owner of the shares offered as security and the lender. In some instances, the borrower and the pledgor are one and the same person.