Fixed and Floating Charges over the Assets of a Company

FIXED AND FLOATING CHARGES all over THE ASSETS OF A COMPANY FIXED CHARGE at that place is no statutory definition or tiny description of situated crab in Nigeria. The plebeian law ideal of fix strike therefore applies subject to roughly statutory modifications. At common law, a bushel ill is a pick over proper(postnominal) dimension of a bon ton, which fastens on the berth when the raise up is created. The fixed accusation attaches to a grouchy piece of property when the film is created and the identity of the property does non falsify (though it may be extended) during the subsistence of the charge. It is non necessary that the property should pull through when the charge is created or that the family should be the proprietor; however, the property or the class of summations to which it be bulkys should be fittingly localize in the instrument creating the charge so that there foil be no doubt whether the property is caught by the charge when it comes into existence or when the phoner acquires it.- Professor I. O. Smith, Nigerian faithfulness of Secured credit, p. 297.

It means that we can non only create a fixed charge over our flummox identified pluss entirely also on summations that we pin down to acquire as ample as we can sufficiently describe such asset in the debenture consummation Italics mine) When a charge is fixed, the asset is appropriated to the satisfaction of the debt immediately or upon the debtor acquiring an overgorge in it in the slipperiness of next after- acquired chattel. It follows from the preceding(prenominal) description that a fixed charge is in general created over specific or as authenticable assets of the company present or future for face land, buildings, trade machineries and other fixed capital of the company to the expulsion of the shifting assets such as book debts, buy in in trade, raw visible 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 sure of the companys property. According...If you pauperism to get a sufficient essay, order it on our website: Ordercustompaper.com

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