i. The value of the assets charged is uncertain since no particular assets are charged.
ii. A floating charge created within six months before the commencement of winding up is
deemed to be a fraudulent preference and is void.
iii. It is postponed to a later fixed charge.
iv. The charge may be avoided, during the company’s liquidation, under Section 314 of the
Act; unless it is proved that the company immediately after the creation of the charge
was solvent.
v. Where a seller of goods reserves title until payment, a floating charge will not, on
crystallisation, attach to these goods. This is illustrated by Aluminium Industries Vaassen
v Romalpa Aluminium (647).
vi. Certain other interests e.g. landlords distress for rent have priority over floating
charges.
Kavungya answered the question on April 15, 2021 at 19:53
- State the advantages of floating charges.(Solved)
State the advantages of floating charges.
Date posted: April 15, 2021. Answers (1)
- What chapter number of the laws of Kenya is the Cooperatives Societies Act?(Solved)
What chapter number of the laws of Kenya is the Cooperatives Societies Act?
Date posted: April 15, 2021. Answers (1)
- What is the maximum number of persons in a sole trader?(Solved)
What is the maximum number of persons in a sole trader?
Date posted: April 15, 2021. Answers (1)
- What are the two fundamental principles of company law?(Solved)
What are the two fundamental principles of company law?
Date posted: April 15, 2021. Answers (1)
- Dissolution is the final stage of liquidation. After a company's affairs are "wound-up," a liquidator calls a final meeting of the members and/or creditors.Explain how...(Solved)
Dissolution is the final stage of liquidation. After a company's affairs are "wound-up," a liquidator calls a final meeting of the members and/or creditors.Explain how winding up and dissolution takes place.
Date posted: April 15, 2019. Answers (1)
- Explain the applicable methods used in issuing of shares to the public.(Solved)
Explain the applicable methods used in issuing of shares to the public.
Date posted: April 15, 2019. Answers (1)
- Explain the difference between underwriters and brokers.(Solved)
Explain the difference between underwriters and brokers.
Date posted: April 15, 2019. Answers (1)
- Define and explain the functions of promoters.(Solved)
Define and explain the functions of promoters.
Date posted: April 15, 2019. Answers (1)
- State the main features of a prospectus(Solved)
State the main features of a prospectus.
Date posted: April 15, 2019. Answers (1)
- Explain the meaning and importance of articles of association of company.(Solved)
Explain the meaning and importance of articles of association of company.
Date posted: April 15, 2019. Answers (1)
- Explain the meaning and significance of the memorandum of association. (Solved)
Explain the meaning and significance of the memorandum of association.
Date posted: April 15, 2019. Answers (1)
- Explain consequences of registration of a company. (Solved)
Explain consequences of registration of a company.
Date posted: April 15, 2019. Answers (1)
- Explain how a limited company is registered in Kenya(Solved)
Explain how a limited company is registered in Kenya
Date posted: April 15, 2019. Answers (1)
- Explain meaning, functions and the differences between holding company and subsidiary company.(Solved)
Explain meaning, functions and the differences between holding company and subsidiary company.
Date posted: April 15, 2019. Answers (1)
- What is an unlimited company?(Solved)
What is an unlimited company?
Date posted: April 15, 2019. Answers (1)
- What are companies limited by guarantee?(Solved)
What are companies limited by guarantee?
Date posted: April 15, 2019. Answers (1)
- What are companies limited by shares?(Solved)
What are companies limited by shares?
Date posted: April 15, 2019. Answers (1)
- What is meant by the term Declaration of Compliance?(Solved)
What is meant by the term Declaration of Compliance?
Date posted: April 15, 2019. Answers (1)
- Explain how the Capital Authority can ensure:
(i) faster growth and development of the Nairobi Stock Exchange...(Solved)
Explain how the Capital Authority can ensure:
(i) faster growth and development of the Nairobi Stock Exchange or Stock Exchange in your country.
(ii) development of other stock exchanges in Kenya or in your country
Date posted: February 7, 2019. Answers (1)
- What economic advantages are created by the existence of:
(i) Primary markets.
(ii) Secondary markets
(iii) Portfolio management firms. (Solved)
What economic advantages are created by the existence of:
(i) Primary markets.
(ii) Secondary markets
(iii) Portfolio management firms.
Date posted: February 7, 2019. Answers (1)