For any new charge completed after 6 April there are new procedures and forms to be followed. These are mainly of relevance to us as your lawyers – however the changes do impact on companies, chargees and third parties making enquiry into a company.
The fundamental requirement to register a charge created by a company within 21 days remains but the following are important changes:-
- The form to use now is form MR01, rather than MG01.
- The original charge does not have to be lodged - a certified copy will suffice.
- The contents of the MR01 are different –
(a) the sum secured is not now stated (which will not be helpful to third parties)
(b) one has to state whether;
(i) the charge creates a fixed charge over any other assets beyond the primary land etc the subject to the fixed charge, so if for example it covers future acquired assets
(ii) the document creates a floating charge
(iii) the floating charge is for all of the property and undertaking of the company
(iv) the company gives a negative pledge; and
(v) the company holds the asset charged as trustee.
- Online filing is now to be made possible.
- A "Unique Charge Code" is to be created for each charge, which will then appear in the Certificate of Registration and has to be quoted on any subsequent filing in relation to the charge, such as filing a Memorandum of Satisfaction.
- The paper registration fee is unchanged at £13, but there is a reduced fee of £10 for electronic filing.
- The new provisions specifically exclude security taken by a landlord from a tenant under a lease ie. a rent deposit from having to be registered at Companies House.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.