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When a company gives
security for its obligations, the prescribed particulars of any charge
must be registered at Companies House. A Form 395 must be duly completed
and filed, together with the original charging document within 21 days
of the creation of the charge.
If the charge
is not registered at Companies House within this timescale it is void
against an administrator or liquidator of the company and against any
person who, for value, acquires an interest in or a right over the property
which is charged. Any debt owed by the company to the lender still remains
outstanding but it ranks as an unsecured debt in the event of the company’s
insolvency.
Although it
is primarily the responsibility of the company to register prescribed
particulars of any charge, it is the chargee who will suffer if the charge
is not registered or if it is registered late. Due to this, it is common
for the chargee to arrange for the registration of the charge.
If the 21 day
registration period is missed, then the court has the power to order an
extension of time but this remedy is far from automatic.
Details of any charge created by the company should also be kept in the
company’s own register of charges at its registered office.
Please note the warning on posting documents to Companies House. Find
out more.
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Jordans can assist
you with charge registrations at Companies House. We offer two levels
of service:
- We can prepare
the required Form 395 on your behalf and lodge this with the original
charge document with Companies House. Our fee for this service starts
at £250 + VAT (£291.47).
- Alternatively, if you have prepared the Form 395, we check this against
the charge document and handle its registration with Companies House.
Our fee for this service starts at £120 + VAT (£138.72).
Whichever of our services you opt for the charge documentation will be
handled as a matter of priority by our experienced Corporate Legal Services
team and will be hand-delivered to Companies House.
Next steps
For more information on our charge registration service please contact
our Corporate Legal Services team.
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