Week 13 - Registration of Charges

Question 1

All charges created by the company are now…

Answer 1

Registrable

Question 2

What is the period for registration?

Answer 2

Period for registration is 21 days starting with the day after charge created

Question 3

What does the Registrar of Companies House do after registration?

Answer 3

Issue a certificate to show it has been done

Question 4

What happens if a charge is not registered?

Answer 4

The charge will be invalid, meaning in the case of insolvency, the creditor may lose their right to be paid in the order of priorities at the start

Question 5

It is also possible to grant…

Answer 5

More than one fixed charge over assets (particularly where the asset has significantly grown in value and hence could accommodate such charges)

Question 6

What is a consequence of non-registration (around debt)?

Answer 6

Debt remains valid, indeed the money advanced against the charge becomes immediately repayable

Question 7

What else used to happen as a consequence of non-registration?

Answer 7

Criminal sanctions