A liability to a creditor which relates to the company's assets as a whole and may become fixed in particular circumstances (such as liquidation).
Compare with fixed charge
Example sentencesExamples
- The creditor took a general floating charge over the company's assets and a fixed charge over its uncollected book debts.
- On 12 th August 1988 Wallace entered into cross-guarantees with the other companies in the Prospective Group in favour of Midland and granted to Midland a debenture containing fixed and floating charges to secure its liability.
- Thereafter the assets subject to the floating charge form a separate fund in which the debenture holder has a proprietary interest.
- The actual ratio in that case was that the payment of a debt due to an unsecured creditor prior to the crystallisation of the floating charge bound the debenture holder.
- The typical floating charge covers all assets in a company's possession from time to time, even if unspecified.
- Yes, but finance companies frequently take floating charges over the assets of a car dealer and those charges sometimes crystallise and the car dealer goes on trading.
- Under the pleaded debentures of 21 December 1992 and 2 April 1994 the book debts were subject to fixed and floating charges to secure the sum of £8m repayable on demand.
- In deciding whether a charge is a fixed charge or a floating charge, the court is engaged in a two-stage process.
- The security would be a floating charge over the company which would own the patents.
- The receivers proceeded to realize the assets charged by the fixed and floating charges created by the debentures.