Part 7 of the Companies Act 2014 proposes to be consolidate and reform the law relating to security created by companies. One of the first changes relates to the definition of “charge” itself. While the general rule will be that all charges must be registered in order to avoid being void, a charge over cash in say a bank account will not have to be registered.
Another significant proposed change is that there will be two separate procedures for registration of charges. A one-stage procedure, similar to the current procedure, will require that particulars of all charges created be delivered to the CRO within 21 days of their creation, while a new two-stage procedure will provide that a notice can be sent to the Registrar stating the company’s intention to create a charge, followed up by a further notification within 21 days of its creation, stating that fact.
[pc-pvt-content allow=”25″ warning=”1″ message=”To view additional content, please register or log in.”]
- View Arthur Cox article on Charges and Debentures
- View Arthur Cox article on Secured Lending
- View Arthur Cox analysis of Part 7: Charges and Debentures
- View text of Part 7 of the Companies Act (as enacted on 23 December 2014)
- View redline of Part 7 as amended in Committee Stage on 5-6 November 2013
- View text of Part 7 as published on 21 December 2012
- View redline of Part 7 as published on 21 December 2012 as against version of 30 May 2011
- View text of Part 7 as published on 30 May 2011