Template:Charges in the uk: Difference between revisions
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===Registering [[charge]]s in the | ===Registering [[charge]]s in the [[UK]]=== | ||
Subject to specified exceptions<ref>one of which is the [[financial collateral arrangement]] under the [[Financial Collateral Regulations]].</ref>, a UK entity must register ''non-possessory'' | Subject to specified exceptions<ref>one of which is the [[financial collateral arrangement]] under the [[Financial Collateral Regulations]].</ref>, a UK entity must register ''non-possessory'' [[security]] (for example, a [[floating charge]]) it grants in favour of any creditor) at [[Companies House]] within 21 days of creating the security, or it will be void on insolvency and against other creditors. | ||
Why? | Why? | ||
Latest revision as of 13:30, 14 August 2024
Registering charges in the UK
Subject to specified exceptions[1], a UK entity must register non-possessory security (for example, a floating charge) it grants in favour of any creditor) at Companies House within 21 days of creating the security, or it will be void on insolvency and against other creditors.
Why?
Because it continues to hold onto the secured asset, a third party dealing with it (who might wish to take security over it) needs to know that it is impressed with a security interest. Not so important when the chargee physically holds the asset — known to fans as a bailment arrangement — since the chargor in that case isn’t free to deal with it.
For foreign companies with dealings, and assets in the UK, but which are not incorporated here? No charge filing necessary, but you may enjoy winding up the juniormost clerk in the office of an afternoon by sending her down to Companies House to file a Slavenburg registration for larks anyway. Long since a dead letter, but we older campaigners actually used to have to do this for real. Fabulous fun.
- ↑ one of which is the financial collateral arrangement under the Financial Collateral Regulations.