Pledges and collaterals

Something that should be always in your consideration when signing agreements for acquiring, selling or changing the capitalization of the company, i.e. taking a new loan etc. is the question of if you’re allowed to do it. 

With the agreements it may very well be that you may have taken on a condition which doesn’t always allow you do things such as signing new loan agreements, taking dividends, leasing assets and so on. Normally you’re only required to inform the other party of your new transactions but it may also mean that you must seek their approval prior to singing and agreeing to something new.

As there may be fines applied in such cases it’s important to keep track on all such conditions and limits you’ve signed off with your current agreements.