GOLDEN POWERS: THE GRANT, EXTENSION AND ENFORCEMENT OF THE PLEDGE

Abstract

The significance currently attached to the exercise of golden powers has increased substantially compared to the recent past, as a result of the considerable expansion of their scope of application, both ratione personae and ratione materiae, now encompassing the financial sector as well. This paper examines the applicability of golden powers to the extension of pledges over shares and bank accounts of strategically relevant undertakings, where such security interests are granted in connection with a bond issuance. The analysis focuses on the deficiencies and critical issues characterising the interpretative approaches adopted in the relevant case law.