The much awaited new commercial companies law (CCL) is widely expected to enable the grant of registered pledges over shares (or, quotas) in limited liability companies. The effect of the possible legislative development and its potential to aid financing transactions may need to be carefully considered.   

Shares (or, quotas) in limited liability companies are moveable property. Pledges over moveables generally are legislated for. Pledges over shares in Onshore LLCs (that is, limited liability companies which are subject to the generally applicable provisions of the current Commercial Companies Law) are not specifically regulated by local law. Notwithstanding, they are possible, in theory.

Currently, the provisions of the Commercial Code which regulate pledges over moveables for a commercial debt (commercial pledges) apply to pledges over shares in Onshore LLCs. The Commercial Code applies to the extent its provisions do not conflict with, and as long as a particular commercial matter is not governed by, another, particular federal commercial law.