Voidable floating charge

In law, a voidable floating charge refers to a floating charge entered into shortly prior to the company going into liquidation which is void or unenforceable in whole or in part under applicable insolvency legislation. The effect of laws relating to voidable floating charges varies from jurisdiction to jurisdiction. Some countries simply provide that such charge are automatically void or not enforceable, In other jurisdictions, they are only voidable and an application must be made by a liquidator or creditor for the floating charge to be set aside.

Voidable floating charge

In law, a voidable floating charge refers to a floating charge entered into shortly prior to the company going into liquidation which is void or unenforceable in whole or in part under applicable insolvency legislation. The effect of laws relating to voidable floating charges varies from jurisdiction to jurisdiction. Some countries simply provide that such charge are automatically void or not enforceable, In other jurisdictions, they are only voidable and an application must be made by a liquidator or creditor for the floating charge to be set aside.