Recent developments impacting on taking and enforcing share security

National Security and Investment Act 2021 (NSIA 2021)

The NSIA 2021 establishes a new regime (from 4 January 2022) which requires notification to the Secretary of State before an acquisition of control over an entity operating in one of 17 specified sectors takes place. A notifiable acquisition completed before notification to and approval by the Secretary of State is void and the acquirer may incur civil and criminal penalties. The government can also scrutinise proposed or completed acquisitions where there is a national security concern and a voluntary notification process is available to obtain prior consent where the mandatory regime does not apply.

For detailed analysis of the application of the mandatory notification regime in the context of taking share security please see ‘The National Security and Investment Act 2021 revisited: when are secured creditors obliged...