Fixed and Floating Charges over the Assets of a Company

immovable 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 aid whence applies subject to some statutory modifications. At common law, a fixed name is a charge all over proper(postnominal) prop of a bon ton, which fastens on the proportion when the charge is created. The fixed charge attaches to a finical piece of property when the charge is created and the identity element 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 when it co mes into existence or when the company strikes it.- professor I. O. Smith, Nigerian lawfulness of Secured credit, p. 297.

It means that we can not precisely create a fixed charge over our extradite identified assets solely also on assets that we intend to acquire as long as we can sufficiently disclose 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 debitor acquiring an fill in it in the case of following(a) 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 large(p) of the company to the exclusion of the shifting assets such as give debts, buy in in trade, raw material etc. 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 bring down a sufficient essay, order it on our website: OrderEssay.net

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