Response to the Company, Regulatory and Insolvency Committees of the CLLS by BEIS on the application of the NSI

A CLLS working party led by the Chairs of the Financial, Insolvency, Regulatory and Corporate Law Committees has been having discussions with the Department for Business, Energy and Industrial Strategy ("BEIS") on the application of NSI to charges. The CLLS sought clarification whether a grant of security over shares where such a grant may create an equitable interest in those shares may constitute a trigger event under section 8(2) of the NSI, which could have the effect of bringing such a grant within the scope of the mandatory notification requirements.