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If neither the company or the charge holder registers the floating or fixed debenture, then does it become void??
As in it doesn’t matter if it was created, it no longer exists, and is not a matter of losing priority to other fixed or floating charges that have been registered.
Thank you.
Here’s an extract from a website article:
“The company will remain liable for the repayment of the debt; but in effect the security lender is exposed because the charge is unsecured.
Unless the position is rectified, the charge is unenforceable by the security lender, and is void/unenforceable against a liquidator, administrator or other creditor of the company.”
This is from the website of Douglas Wemyss Solicitors LLP t/a DWS Legal
and here’s the link:
https://d-w-s.co.uk/late-registration-charge-companies-house/
The debt itself doesn’t become void. It’s just that it’s no longer a secured loan because the legal requirements for valid debentures have not been complied with
But the debt itself is still good but it’s now an unsecured creditor and the money is repayable on demand
OK?
Hello Mike, i just passed the exam ENG variant thanks to your lectures. i have a question: who is entitled/authorized and liable for consequences (if he case) to register within 21 days?
Thank you
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