Commentary

19 Nature and effect of floating charges

COMPANIES vol 10(2) borrowing and debentures
| Commentary

19 Nature and effect of floating charges

| Commentary

19 Nature and effect of floating charges

For many companies two major classes of asset are their stock-in-trade (those goods which the company is intending to supply to its own customers and which it is holding pending sale and delivery) and their book debts (those debts owed by customers to whom goods have been supplied or for whom work has been done). The fact that a company will almost always have items in both of these classes makes them extremely suitable for use as security. On the other hand, the content of both these classes of asset will change on

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