21 November 2009
what is the concept of floating charge & fixed charges? what is a treatment in liquadation of company while asset pledge with floating charge?
28 November 2009
In case of fixed charge, the borrower can not deal (sell)with the charged asset. it covers only asset specifically charged. whereas in case of floating charge, it covers all subsequent assets falling in that category n the co. can deal with asset charged. If the asset with the floating charge is pledged (physical security given to lender)then he will sell the asset, recover his debt and bal., if any, will be handed over to the co. or if there is deficit, it will be considered as unsecured crs. Regards, CA Shakuntala Chhangani
CAclubindia
