About this service
Auction sale of securities and shares is the stage of enforcement proceedings where the attachment is already in place and the question is how correctly the valuation is made, the auction announced and the proceeds distributed. The Law of Georgia on Enforcement Proceedings governs this process by the rules for movable property, and that choice determines the entire chronology: from valuation to the public auction and to the annulment of auction results. This page unpacks that chain from both the creditor's and the debtor's positions.
Securities under the movable-property rules
Article 52 of the law gives the master key: the rules of attachment and realization of movable items apply to securities. This simple formula unlocks the whole legal regime: no special exchange procedure and no special registration — shares and securities are attached and offered at auction just like other movable items.
Valuation and announcement of the auction
Article 47 of the law regulates two paths of valuation. Where the market value can be determined at the time of the inventory, it is recorded directly in the attachment act; where it cannot, the property is valued after registration of the attachment by the National Bureau of Enforcement or, on its assignment, by another competent person. The party also has its own instrument: at the commencement of the proceedings, or before the Bureau's valuation, it has the right to submit an expert's report under which the property was valued within 6 months before the commencement; where both parties submitted reports, the Bureau relies on one of them. Valuation is precisely the point where the whole subsequent arithmetic of the auction is born — an error in the starting price repeats itself in every round.
On the valued property, Article 50 of the law sets the deadline: within 1 month of the attachment of the movable property (in the tax case — within 2 weeks of the commencement of the proceedings), the Bureau or another person under contract announces a public auction, and the realization proceeds under the rules of the corresponding chapter of the law. An instrument joins this: under Article 49, the Bureau may, before announcing the auction, give the debtor the opportunity to realize the property itself — under the Bureau's control, but only where such realization covers the fee, the costs of enforcement and the creditor's claims. For the debtor this is a window — to sell its own shares itself at a better price; for shares, where the market is followed live, this difference is often substantial.