Granted a mortgage over someone else's shares

[nextdj]

Hi guys,

I have been reading this announcement from Next DC: http://newsstore.fairfax.com.au/app...u/apps/qt/quote.ac?code=NXT&section=ca&sy=age

It says that the wife of Bevan Slattery (non executive director and founder of the company) has been granted a mortgage over the shares held by Robin Khuda (Chief Commercial Officer and Deputy Executive Officer).

I am curious as to why Robin would agree to it (having someone get a mortgage and using his shares as security)? What's in it for him? How do these arrangements usually work?

 

[tech/a]

Hi guys,

I have been reading this announcement from Next DC: http://newsstore.fairfax.com.au/app...u/apps/qt/quote.ac?code=NXT&section=ca&sy=age

It says that the wife of Bevan Slattery (non executive director and founder of the company) has been granted a mortgage over the shares held by Robin Khuda (Chief Commercial Officer and Deputy Executive Officer).

I am curious as to why Robin would agree to it (having someone get a mortgage and using his shares as security)? What's in it for him? How do these arrangements usually work?

Don't know the situation at all but suspect that Slattery has given some financial or other help to Khuda and is securing his interest with a caveat ( mortgage ) over his shares.