Fixed and Floating Charges I A fixed and floating charge may be created over the entire assets and undertaking of the company. If it is sufficiently broad, it may capture the entire of company’s undertaking, thereby facilitating its sale for the benefit of the secured creditor. This type of “debenture” is commonly granted by a private company to a single […]
Registerable Charges I The Companies Act requires most types of charge made by a company to be registered in the Companies Registration Office (CRO). A charge which is not registered is void as against the liquidator and any creditor of the company. It remains valid as between the debtor and the creditor. This defeats the principal purpose of security, as it […]
Loan Finance The majority of small businesses fund themselves from bank lending and retained funds. Loan finance can extend from short term finance, typically provided by a bank, to longer term finance provided by investors. A loan or investment, whether from family, friends or outsiders, should be formalised in a legal agreement. The legal agreement should provide for the nature […]
Corporate Securities / Debentures In the widest sense of the word, a “debenture” includes any document which creates or acknowledges a debt. In that sense, debentures may refer to secured or unsecured transferable loan capital. In the present context, a “debenture” is intended to refer to a charge over all the assets of a corporate borrower or over all the […]
2014 Act & Objects The Companies Act 2014 provides, in effect, that the private limited company, referred to as “an LTD”, is the default form of company. It is possible to elect into the designated activity company regime, which resembles more closely, the pre-2014 Act form of private limited company. A private limited company has unlimited capacity to do all […]
Overview Special considerations apply to taking corporate security, over and above those applicable to taking security from individuals. These considerations arise from the nature of companies, Companies Act compliance and from the ability of a company to grant security over all of its assets and its undertaking. The lender will require to be satisfied that the corporate borrower exists and that […]