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In finance, a floating charge is a security interest over a fund of changing assets of a company or other legal person.Unlike a fixed charge, which is created over ascertained and definite property, a floating charge is created over property of an ambulatory and shifting nature, such as receivables and stock.
Romer LJ said a charge is "floating" if it (1) is a charge on present and future assets (2) the class of assets changes in the ordinary course of business, and (3) the company can deal with the assets in business as usual. [1] The term “floating” is one that until recently was a mere popular term. It certainly had no distinct legal meaning.
In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowledges it, but in some countries the term is now used interchangeably with bond , loan stock or note .
Bonds can be useful for adding a conservative component to an investment portfolio to balance out stocks or other high-risk securities. Debentures are a specific type of bond that government ...
The case related to an appeal by a debenture holder against an order of Malins VC.The appeal came before Sir G.M. Giffard LJ.The issue centred upon the company's ability to assign all of its "undertaking" to a mortgagee, and whether undertaking included the proceeds of sale of vessels belonging to the company.
Agnew v Commissioners of Inland Revenue, more commonly referred to as Re Brumark Investments Ltd [2001] UKPC 28 is a decision of the Privy Council relating to New Zealand and UK insolvency law, concerning the taking of a security interest over a company's assets, the proper characterisation of a floating charge, and the priority of creditors in a company winding-up.
In finance, a convertible bond, convertible note, or convertible debt (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value.
The Inland Revenue, which was a major creditor, argued the debenture was merely a floating charge, so its claim for tax owed took priority over the bank under Insolvency Act 1986 section 175. At stake was merely £16,136, but the case was a test case .