Floating charge invalidity applies to recent charges before winding up unless solvency is proven; cash consideration preserved. A floating charge created within the twelve months immediately preceding winding up is invalid unless the company was solvent immediately after creation; however, cash paid to the company at or after creation in consideration for the charge is preserved together with interest on that amount at the notified rate.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Floating charge invalidity applies to recent charges before winding up unless solvency is proven; cash consideration preserved.
A floating charge created within the twelve months immediately preceding winding up is invalid unless the company was solvent immediately after creation; however, cash paid to the company at or after creation in consideration for the charge is preserved together with interest on that amount at the notified rate.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
