Fixed and floating charges : the latest conflicting law and how to address the gaps
Thai, Lang 2007, Fixed and floating charges : the latest conflicting law and how to address the gaps, in Papers presented at the 2007 Corporate Law Teachers Conference (Deakin University, Melbourne) 4-6 February Corporate Law and Corporate Governance: Stocktaking on Compliance and Enforcement, Corporate Law Teacher's Association, Melbourne, Vic..
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Title
Fixed and floating charges : the latest conflicting law and how to address the gaps
Papers presented at the 2007 Corporate Law Teachers Conference (Deakin University, Melbourne) 4-6 February Corporate Law and Corporate Governance: Stocktaking on Compliance and Enforcement
Publication date
2007
Publisher
Corporate Law Teacher's Association
Place of publication
Melbourne, Vic.
Summary
Can book debts be subject to a fixed charge? This question was considered by the House of Lords in National Westminster Bank v. Spectrum Plus Limited [2005] UKHL 41 where the full House was against the idea of a fixed charge on book debts and insisted that only a floating charge had been created. The law in this area is still vague and uncertain in Australia. This paper argues that the financiers and the companies should be given the freedom to decide how they wish to structure their charge documents. The paper sets out to argue that, in respect to the use of book debts as security for a loan, the only way for both the financiers and the companies to do business is to create a sustained workable fixed charge or even multiple fixed and floating charge on book debts. The author explains how this could be possible and how the proposed model would not deny the statutory priority rights of the preferential creditors.
Language
eng
Field of Research
180109 Corporations and Associations Law
Socio Economic Objective
940405 Law Reform
HERDC Research category
E2 Full written paper - non-refereed / Abstract reviewed
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