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.
Pledge rights and distribution of proceeds
Where a right of pledge in favour of another pledgee is registered on the attached movable property whose compulsory realization the creditor demands, the Bureau notifies the pledgee of the commencement of the proceedings and sets a deadline for submitting claims; the other pledgee must submit monetary claims within 10 calendar days of receiving the notice and is itself responsible for their accuracy. From the proceeds, the fee and the costs of enforcement are covered first, then the pledgees' claims in order of priority. Upon transfer into the purchaser's ownership, all attachments and property rights on the item are terminated, unless the purchaser wishes to become a party to the obligatory relation. In proceedings for the benefit of the state, where no winner appears at the auction, the Bureau issues, within 15 days of the auction's completion, an order on transfer of the property in kind.
Annulment of auction results and the guarantee
Article 76 of the law concerns the purchaser's discipline: if the winning person at the auction does not pay the price of the property within the set deadline, it loses the sum submitted as a guarantee on the day of the auction, which remains in the Bureau's ownership. The Bureau issues an order annulling the results of the auction and, within 3 days of its issuance, announces a new auction, which is not counted as a repeat auction. For the creditor this means that a collapsed deal does not stall the process — it quickly passes into a new round.
Frequently asked questions
Under what rules are securities realized?
Under the rules of attachment and realization of movable items — according to Article 52 of the law.
Within what time is the auction announced?
Within 1 month of the attachment; in the tax case — within 2 weeks of the commencement of the enforcement proceedings.
May the debtor sell the property itself?
Yes — before the announcement of the auction, under the Bureau's control, provided the realization covers the fee, the costs and the creditor's claims.
What happens if the winner does not pay?
It loses the guarantee; the Bureau annuls the results and announces a new auction within 3 days.
How We Help on Legal.ge
We build full control of the auction: in the creditor's position — we examine the accuracy of the valuation and submit our own expert report, monitor the one-month deadline and the order of distribution of the proceeds; in the debtor's position — we activate the self-realization window and protect the value of the shares from a low starting price; in the pledgee's position — we observe the 10 calendar days for submitting claims. Contact us for management of the auction process that serves your financial interest.