A company creates a charge over its assets in favour of a bank but fails to deliver the particulars to the Registrar within 21 days. What is the effect under s859H Companies Act 2006?

Correct answer: A) The charge is void against a liquidator, administrator and creditors of the company, but the debt itself remains payable and becomes immediately repayable

Explanation

Failure to register a charge within 21 days of creation makes the security void against a liquidator, administrator or creditor, so the lender becomes an unsecured creditor in an insolvency. The obligation to repay is not affected, and the money secured becomes immediately payable. The court may extend the period for registration in some circumstances.