ExpertEasy1 markMultiple Choice
ACCA · Question 38 · Corporate and Business Law
Within how many days must a newly created charge (such as a mortgage over company property) be registered at Companies House to ensure it is valid against a liquidator or administrator?
Within how many days must a newly created charge (such as a mortgage over company property) be registered at Companies House to ensure it is valid against a liquidator or administrator?
Answer options:
A.
14 days
B.
21 days
C.
28 days
D.
30 days
How to approach this question
Recall the statutory time limit for registering company charges.
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 day on which the charge is created. Failure to do so makes the charge void against a liquidator, administrator, or creditor.
Common mistakes
Confusing the 21-day charge registration rule with the 14-day meeting notice rule.
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