Q&As

Can a partnership grant a floating charge over its assets?

read titleRead full title
Published on LexisPSL on 22/11/2013

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • Can a partnership grant a floating charge over its assets?
  • Why is it relevant?
  • Can a partnership grant a floating charge over its assets?
  • General partnership
  • Limited partnership
  • Limited liability partnership (LLP)

Why is it relevant?

The question may arise in the context of a security review or formulating an enforcement strategy for the realisation of assets of the partnership.

Can a partnership grant a floating charge over its assets?

The answer to the question depends on the type of partnership:

General partnership

A general partnership has no separate legal identity and cannot grant a floating charge over its assets. Except where a qualifying agricultural floating charge exists, an administrator may only be appointed to an partnership by either

  1. an order of the court pursuant to paragraph 11 of Schedule B1 to the Insolvency Act 1986 (IA 1986) as modified by the Insolvent Partnership Order 1994 (SI 1994/2421) u

Related documents:

Popular documents