Section A

BankCorp lends £100,000 to a manufacturing company and takes a floating charge over the company's inventory. BankCorp fails to register the charge with the Registrar of Companies within the required 21-day period. What is the consequence of this failure to register?

The charge remains valid, but BankCorp must pay a late registration penalty.

The charge is void against a liquidator, administrator, and any creditor of the company, and the loan becomes immediately repayable.

The floating charge automatically converts into a fixed charge.

The loan agreement is entirely void and the company does not have to repay the money.