Floating Charges
UNIVERSITY OF LAGOS
SCHOOL OF POST GRADUATE STUDIES
LLM PROGRAM
SEMINAR PAPER IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE GRANT OF LLM DEGREE
COURSE: SECURED CREDIT TRANSACTION
TOPIC: FLOATING CHARGE AS A MEANS OF SECURITY IN CORPORATE FINANCE
MEMBERS
ODO Ifeoma Matric. No. 109061033
ARINOLA Abisola Ajoke Matric. No. 109061098
AWAJI Cecilia Matric No. 109061026
FALADE Olaronke Matric. No. 099061090
LECTURER: DR. DAYO AMOKAYE AND DR. TUNDE OTUBU
TABLE OF CONTENT
INTRODUCTION
CHAPTER 1 DEFINITION AND NATURE OF FLOATING CHARGE
CHAPTER 2 CREATION OF FLOATING CHARGE
CHAPTER 3 POTENCY OF FLOATING CHARGE AS SECURITY
CHAPTER 4 -CHALLENGES, CRITICISMS AND PROFERRED SOLUTIONS
CONCLUSION
INTRODUCTION
The ability of a corporation to function properly and achieve its laid down objectives is based on the availability of funds. Capital is indeed necessary for any corporation to function properly. There are two principal sources of corporate financing: Equity financing and Debt financing.
It is normal for the power of a Company to mortgage or charge its assets to be set out in the objects clause of its Memorandum of Association, but in the absence of an express power, a trading company (i.e. one formed with a view to making a profit by carrying on any business activity) has an implied power to give security over any of its property and assets for debts properly contracted by it.[1].
Borrowers are often obliged to provide security for the repayment of their debts. In this respect a company is no different from any other borrower. However there are sufficiently unique features associated with the granting of security by a company to justify it being treated as a separate topic notable among which is THE FLOATING CHARGE.
Some knowledge of these general topics is essential in order to understand the
SCHOOL OF POST GRADUATE STUDIES
LLM PROGRAM
SEMINAR PAPER IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE GRANT OF LLM DEGREE
COURSE: SECURED CREDIT TRANSACTION
TOPIC: FLOATING CHARGE AS A MEANS OF SECURITY IN CORPORATE FINANCE
MEMBERS
ODO Ifeoma Matric. No. 109061033
ARINOLA Abisola Ajoke Matric. No. 109061098
AWAJI Cecilia Matric No. 109061026
FALADE Olaronke Matric. No. 099061090
LECTURER: DR. DAYO AMOKAYE AND DR. TUNDE OTUBU
TABLE OF CONTENT
INTRODUCTION
CHAPTER 1 DEFINITION AND NATURE OF FLOATING CHARGE
CHAPTER 2 CREATION OF FLOATING CHARGE
CHAPTER 3 POTENCY OF FLOATING CHARGE AS SECURITY
CHAPTER 4 -CHALLENGES, CRITICISMS AND PROFERRED SOLUTIONS
CONCLUSION
INTRODUCTION
The ability of a corporation to function properly and achieve its laid down objectives is based on the availability of funds. Capital is indeed necessary for any corporation to function properly. There are two principal sources of corporate financing: Equity financing and Debt financing.
It is normal for the power of a Company to mortgage or charge its assets to be set out in the objects clause of its Memorandum of Association, but in the absence of an express power, a trading company (i.e. one formed with a view to making a profit by carrying on any business activity) has an implied power to give security over any of its property and assets for debts properly contracted by it.[1].
Borrowers are often obliged to provide security for the repayment of their debts. In this respect a company is no different from any other borrower. However there are sufficiently unique features associated with the granting of security by a company to justify it being treated as a separate topic notable among which is THE FLOATING CHARGE.
Some knowledge of these general topics is essential in order to understand the