Debtor's Welcome to their Brother
Debtor's Welcome to their Brother
The meeting started by making a decision to re-activate the drafting sub-committee.
Reservation of title should be seen as a security interest. The committee also confirmed its earlier decision that reservation of title should not be outlawed. On the question of tracing assets abroad, the committee felt the matter should be left for the courts to apply their ordinary principles.
The chairman commented that all that was necessary for a diligent creditor to find out whether a reservation of title is void was to check the notices on the public file.
Mr Millett commented that while he was opposed to floating charges, it was too lat to abolish them. The committee then goes on to discuss the function of a floating charge. The committee also discussed whether a debenture-holder should register a monetary limit in respect of the sum secured by a floating charge. It was unanimously agreed that a monetary limit should be registered.
On avoiding a floating charge, there was an emphasis on preventing a debenture-holder from washing the overdraft. The committee also noted that the enforcement of a fixed charge should be restricted to 12 months after the appointment of a receiver, unless there was a leave of the Court.
On pages 9 and 10, you will find the Bankruptcy and Companies Office’s comments on the matters discussed in the meeting above.
On page 12, you will find a paper discussing voidable securities and recovery of property on voidable transactions.
On page 12, you will find a note to members regarding the implication of the Charging Orders Act 1979.
On page 18, you will find a note by Mr Millett regarding a number of resolution which have been reserved to a later meeting.