If a company acquires an asset, such as plant and machinery, which is already subject to a registered charge by the previous owner, what is the legal status of that charge?

Test yourself: pick an answer

• A)The charge is automatically voided upon the transfer of ownership.
• B)The acquiring company must register a brand new charge within 15 days.
• C)The charge continues to be valid and enforceable against the acquired assets.
• D)The charge is transferred solely to the directors of the acquiring company.