Part 7 – Charges and Debentures

21-01-2014

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.

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