ABSTRACT
In this case the owner of shares in a tea company mortgaged the shares to raise capital.
12.1.2 What is a mortgage? The borrower, called the mortgagor, grants the lender, called the mortgagee, a mortgage over his property. The effect of this is that the mortgagee has rights in the property which can be realised if the mortgagor defaults in repayment. If the borrower runs into debt and cannot repay the sum borrowed, the mortgagee can claim possession of the property and force a sale and so recover the sum borrowed from the proceeds of sale.
