Re Yorkshire Woolcombers Association Ltd
1903 · [1903] 2 Ch 284 (CA)
Posted By lanbuk.com
- Facts
- A company gave a charge over its present and future book debts but remained free to collect and use them in its business.
- Issue
- Was the charge fixed or floating?
- Held
- It was a . Romer LJ identified its marks: a charge on a class of assets present and future, which changes in the ordinary course of business, and which the company may use in the ordinary way until the chargee takes steps.
- Principle
- A floating charge hovers over a changing class of assets that the company may deal with in the ordinary course of business.
- Why it matters
- It was affirmed as Illingworth v Houldsworth [1904] AC 355.
Words and Latin in this note
- Floating charge
- A charge over a changing class of a company's assets that it may deal with in the ordinary course of business until the charge crystallises. A fixed charge has priority over it: section 151. Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.