Hostname: page-component-cd9895bd7-gbm5v Total loading time: 0 Render date: 2024-12-25T05:29:16.140Z Has data issue: false hasContentIssue false

Fixed and Floating Charges

Published online by Cambridge University Press:  21 November 2001

Get access

Extract

The Privy Council decision in Agnew v. Inland Revenue Commissioner [2001] B.C.C. 252 (on appeal from the New Zealand Court of Appeal in Re Brumark Investments Ltd.) decides that where a charge over the uncollected book debts of a company leaves the company free to collect and then to use the proceeds for its own benefit in the ordinary course of business, the charge is inevitably a floating charge and not a fixed charge, whatever the debenture might say. The court’s reason for this, in short, was that it makes no commercial sense to separate a book debt from its proceeds and so, if the company can use the proceeds at will, then the charge on the debt itself must be a floating charge.

Type
Case and Comment
Copyright
Copyright © Cambridge Law Journal and Contributors 2001

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)