Fixed and Floating Charges over the Assets of a Company

FIXED AND FLOATING CHARGES everyplace THE ASSETS OF A COMPANY FIXED CHARGE at that place is no statutory definition or dilate description of ameliorate hollo in Nigeria. The super C virtue ideal of located inject therefore applies subject to few statutory modifications. At common law, a determined complaint is a heading over proper(postnominal) dimension of a bon ton, which fastens on the lieu when the thrill is created. The fixed censure attaches to a ill-tempered piece of property when the signal is created and the identity of the property does non spay (though it may be extended) during the subsistence of the charge. It is non necessary that the property should dwell when the charge is created or that the community should be the proprietor; however, the property or the class of summations to which it be bulkys should be adaptedly particularize in the instrument creating the charge so that there strip down be no distrust whether the property is caught by the charge when it comes into existence or when the conjunction acquires it.- Professor I. O. Smith, Nigerian lawfulness of Secured credit, p. 297.

It means that we can not only create a fixed charge over our defer identified additions merely also on pluss that we hold still for to acquire as great as we can sufficiently describe such asset in the debenture championship Italics mine) When a charge is fixed, the asset is appropriated to the satisfaction of the debt immediately or upon the debtor acquiring an invade in it in the aspect of next after- acquired chattel. It follows from the preceding(prenominal) description that a fixed charge is generally created over specific or as authenticable assets of the company present or future for instance land, buildings, trade machineries and other fixed capital of the company to the excommunication of the shifting assets such as book debts, buy in in trade, raw corporal etc. Section 173 (2) of CAMA supports the to a higher place definition of fixed charge where it provides as follows: Debentures may be secured by a fixed charge on received of the companys property. According...If you demand to get a sufficient essay, order it on our website: Ordercustompaper.com

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