Liquidator in shock move to sell shares

THE security of billions of euro in shares held electronically for Irish shareholders will be compromised if the country's top liquidator succeeds in selling shares held in trust by a stockbroking firm in receivership.

In an unprecedented manoeuvre, Tom Grace of Pricewaterhouse Coopers is to seek the approval of the High Court to sell shares belonging to 1,850 people who were clients of W&R Morrogh, which went into liquidation with a shortfall of 10 million in April of last year.

If Mr Grace is successful it will change the status of shares held in trust electronically by Irish financial institutions in nominee accounts. In effect it will mean that in all future liquidations or receiverships of stockbroking firms the receiver will be able to access and sell off the individual shareholding of clients who deal with the firm.