Multiple choice

Lein on shares means

  1. a kind of security for a claim against a shareholder

  2. a kind of penal action against the shareholder

  3. a kind of legal obligation to be paid by the company

  4. a kind of negotiable instrument

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A Correct answer
Explanation

 Lein is a right of a person over the goods of another person in the form of a security for a claim upon that person. A company may have some claim upon a shareholder in relation to shares, therefore, it may mark its lien on the shares, so lien on shares is a kind of security for a claim against the shareholder.

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