ACCA Applied Skills · Corporate and Business Law (Global) · Loan capital
Vexa Ltd creates a registrable charge. Which of the following is the correct statement about the person who may register it?
Either the company or the chargee may deliver the charge particulars for registration. In practice the chargee usually ensures it is done, because failure to register within the time limit makes the security void against the liquidator and creditors.
- AThe company or the chargee may deliver the particulars for registration, but the chargee has a strong interest in doing so because the security is at risk if registration is missedCorrect
- BOnly the registry may register a charge on its own initiative
- COnly the company's auditor may register the charge
- DRegistration is only possible after the company enters liquidation
Explanation
Registration is typically done by delivering particulars of the charge to the registry within the time limit. Either the company or the chargee may do this. The chargee in practice ensures it happens because the security is void against the liquidator and creditors if registration is missed. The other options describe processes that do not exist.
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