Floating charge invalid if created shortly before winding up unless company solvent; cash consideration preserved with interest at prescribed rate. A floating charge created within the antecedent period before winding up is invalid unless the company was solvent immediately after creation; however, any cash paid as consideration for the charge is preserved together with interest at the government prescribed rate, and a transitional proviso shortens the antecedent period for charges created before the Act's commencement.
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Floating charge invalid if created shortly before winding up unless company solvent; cash consideration preserved with interest at prescribed rate.
A floating charge created within the antecedent period before winding up is invalid unless the company was solvent immediately after creation; however, any cash paid as consideration for the charge is preserved together with interest at the government prescribed rate, and a transitional proviso shortens the antecedent period for charges created before the Act's commencement.
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