Q&As

Can a body formed under Royal Charter grant security over investments and/or grant a debenture over its assets as security for borrowing. Is a body formed under Royal Charter required to keep a register of charges?

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Published on LexisPSL on 06/08/2019

The following Banking & Finance Q&A provides comprehensive and up to date legal information covering:

  • Can a body formed under Royal Charter grant security over investments and/or grant a debenture over its assets as security for borrowing. Is a body formed under Royal Charter required to keep a register of charges?
  • What is a Royal Charter body?
  • Powers of a Royal Charter body
  • That is an unregistered company
  • That is not an unregistered company
  • Restrictions
  • Granting a debenture
  • Is a body formed under Royal Charter required to keep a register of charges?

What is a Royal Charter body?

In answering this query we assume that Royal charter describes an honorary status, which may be granted to eminent professional bodies or charitable organisations which have a record of achievement and are deemed financially sound in the opinion of the Privy Council. See Practice Note: Royal Charters for further information.

The royal charter will define the chartered body’s objectives, constitution and powers to govern its own affairs. The terms of each charter are different depending upon the purpose and requirement of the type of organisation being incorporated.

Powers of a Royal Charter body

That is an unregistered company

An unregistered company is defined in regulation 2(a) of the Unregistered Companies Regulations 2009, SI 2009/2436 which mirrors section 1043(1) of the Companies Act 2006 (CA 2006), as:

'...a body corporate incorporated in and having a principal place of business in the United Kingdom other than:

(a) bodies incorporated by, or registered under, a public general Act of Parliament;

(b) bodies not formed for the purpose of carrying on a business that has for its object acquisition of gain by the body or its individual members;

(c) a body for the time being exempted from section 1043 of the Companies Act 2006 by a direction of the Secretary of State under subsection (1)(c) of that section;

(d) an open ended investment company; [or]

[(e) a protected cell company registered under Part

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