ExpertEasy1 markMultiple Choice
ACCA · Question 38 · Capital and the financing of companies
Within how many days must a company register a new charge (such as a mortgage) with Companies House to ensure it is valid against a liquidator?
Within how many days must a company register a new charge (such as a mortgage) with Companies House to ensure it is valid against a liquidator?
Answer options:
A.
14 days.
B.
21 days.
C.
28 days.
D.
30 days.
How to approach this question
Memorize the statutory deadline for registering security interests.
Full Answer
B.21 days.✓ Correct
Under section 859A of the Companies Act 2006, a charge created by a company must be registered at Companies House within 21 days beginning with the day after the date of creation of the charge. Failure to do so makes the charge void against a liquidator or administrator, rendering the debt unsecured.
Common mistakes
Confusing this 21-day limit with the 14-day notice period for general meetings.
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