Thornbury Ltd grants a fixed charge over its warehouse to a lender. The lender's solicitor forgets to deliver the charge for registration at Companies House, and the error is discovered six weeks after the charge was created. Thornbury Ltd is still trading and solvent. Which statement is correct?

Correct answer: D) The charge is void against a liquidator, an administrator and creditors, the secured money becomes immediately payable, and the lender may apply to the court for an order extending the period for delivery

Explanation

Under s859A Companies Act 2006, a charge must be delivered for registration within 21 days beginning with the day after its creation. If it is not, s859H makes the charge void against a liquidator, an administrator and any creditor of the company, and the money it secures becomes immediately payable; the debt itself is not void. Under s859F the court may extend the period if the failure was accidental, due to inadvertence or some other sufficient cause, or if it is otherwise just and equitable, usually without prejudice to rights acquired before registration. The registrar cannot accept late delivery without a court order.