Law · Corporate Law
Under the Companies Act, 2013, which of the following statements regarding a floating charge is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It deters the company from creating any subsequent fixed charge having priority over the floating charge under all circumstances.
- 2It must be registered only at the company's registered office, and failure to do so completely voids the underlying debt.
- 3It must be registered with the Registrar of Companies within 30 days of its creation, otherwise it shall not be taken into account by a liquidator.✓
- 4It is a charge over specific, identifiable assets which the company cannot deal with freely in the ordinary course of business.
Correct answer
It must be registered with the Registrar of Companies within 30 days of its creation, otherwise it shall not be taken into account by a liquidator.
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