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Companies Act 1985

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Changes over time for: Section 196

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Version Superseded: 06/04/2008

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Point in time view as at 06/04/1997. This version of this provision has been superseded. Help about Status

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There are currently no known outstanding effects for the Companies Act 1985, Section 196. Help about Changes to Legislation

[F1196 Payment of debts out of assets subject to floating charge (England and Wales).E+W+S

(1)The following applies in the case of a company registered in England and Wales, where debentures of the company are secured by a charge which, as created, was a floating charge.

(2)If possession is taken, by or on behalf of the holders of any of the debentures, of any property comprised in or subject to the charge, and the company is not at that time in course of being wound up, the company’s preferential debts shall be paid out of assets coming to the hands of the person taking possession in priority to any claims for principal or interest in respect of the debentures.

(3)Preferential debts” means the categories of debts listed in Schedule 6 to the Insolvency Act; and for the purposes of that Schedule “the relevant date” is the date of possession being taken as above mentioned.

(4)Payments made under this section shall be recouped, as far as may be, out of the assets of the company available for payment of general creditors.]

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