Floating charge

From ACT Wiki
Revision as of 10:12, 8 October 2013 by Doug Williamson (Talk | contribs) (Category added 8/10/13)

Jump to: navigation, search

Law.

A charge over the general assets of a company, such as stock.

The assets may change and the company can use the assets without the consent of the secured creditor until the charge 'crystallises' (becomes fixed).

Crystallisation happens on the appointment of an administrative receiver, on the presentation of a winding-up petition or as otherwise provided for in the document creating the charge.


See also