Law · Corporate Law
A company has issued debentures secured by both fixed and floating charges. Which of the following statements is correct regarding the registration of these charges under corporate law?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both fixed and floating charges must be registered with the Registrar of Companies to be valid against a liquidator.✓
- 2Only fixed charges are mandatory to be registered with the Registrar of Companies.
- 3The primary statutory responsibility to register the charge lies exclusively upon the charge-holder rather than the company.
- 4Failure to register a charge has no bearing on its priority during insolvency proceedings.
Correct answer
Both fixed and floating charges must be registered with the Registrar of Companies to be valid against a liquidator.
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