Law · Company Law

What restriction applies to a company regarding assets under a fixed charge?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1There are no restrictions on the company's freedom to manage assets
2The company can sell the assets but must use the proceeds to pay debts
3The company can sell the assets only if they are replaced by better ones
4The company cannot sell or transfer the assets without the charge-holder's consent✓

Correct answer

The company cannot sell or transfer the assets without the charge-holder's consent

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