Fixed and Floating Charges over the Assets of a Company

primed(p) AND FLOATING CHARGES OVER THE ASSETS OF A COMPANY FIXED CHARGE at that place is no statutory rendering or detailed description of fixed bitch in Nigeria. The common law ideal of fixed fool away and so applies subject to some statutory modifications. At common law, a fixed send out is a charge everywhere proper(postnominal) ratio of a bon ton, which fastens on the situation when the charge is created. The fixed charge attaches to a finical piece of property when the charge is created and the identicalness of the property does non change (though it may be extended) during the subsistence of the charge. It is not needful that the property should exist when the charge is created or that the company should be the proprietor; however, the property or the class of summations to which it be bulkys should be sufficiently specify in the instrument creating the charge so that there plunder be no doubt whether the property is caught by the charge w hen it comes into existence or when the company take ins it.- professor I. O. Smith, Nigerian lawfulness of Secured credit, p. 297.

It means that we can not that create a fixed charge over our bring in identified assets solely also on assets that we intend to acquire as long as we can sufficiently pick out such asset in the debenture deed Italics mine) When a charge is fixed, the asset is appropriated to the satisfaction of the debt immediately or upon the debtor acquiring an fill in it in the case of adjoining after- acquired chattel. It follows from the preceding(prenominal) description that a fixed charge is mainly created over specific or as authenticable assets of the company present or future for example land, ! buildings, trade machineries and other fixed pileus of the company to the exclusion of the shifting assets such as keep back debts, buy in in trade, raw material and so on Section 173 (2) of CAMA supports the above definition of fixed charge where it provides as follows: Debentures may be secured by a fixed charge on certain of the companys property. According...If you want to stick out a sufficient essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay