Q&As

Is there any use in practice of a charge that is registrable at Companies House but has not been registered, ie does it confer any benefit at all on a chargee?

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Produced in partnership with Peter Susman of Henderson Chambers
Published on LexisPSL on 12/05/2016

The following Banking & Finance Q&A produced in partnership with Peter Susman of Henderson Chambers provides comprehensive and up to date legal information covering:

  • Is there any use in practice of a charge that is registrable at Companies House but has not been registered, ie does it confer any benefit at all on a chargee?
  • Registration of charge with Companies House
  • Late registration
  • Effect of failure to register as against the debtor company
  • Effect of failure to register as against third parties
  • Remedies against those at fault
  • Conclusion

Is there any use in practice of a charge that is registrable at Companies House but has not been registered, ie does it confer any benefit at all on a chargee?

Registration of charge with Companies House

Companies Act 2006, s 859A (CA 2006) requires that any charge created by a company be registered with Companies House within 21 days after the creation of the charge. The register is open to public inspection, and the purpose and effect of registration is to warn creditors who subsequently inspect the register that the charge exists and, subject to other relevant priority rules, is likely to have priority over later charges.

In general, any charge or mortgage securing payment by the company is registrable under the CA 2006, but it is to be noted that some charges are not, such as a ‘security financial collateral arrangement’, and in case of doubt specific legal advice should be sought. It should also be noted that the registration must include (inter alia) details of any right given to the registering creditor to prohibit or restrict subsequent charges gaining priority.

Late registration

If there has been a failure to effect a timely registration, an application may be

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