Q&As

Can a partnership grant a floating charge over its assets?

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Published by a ÀÏ˾»úÎçÒ¹¸£Àû Restructuring & Insolvency expert
Published on: 22 November 2013
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Why is it relevant?

The question may arise in the context of a security review or formulating an Enforcement strategy for the realisation of assets of the partnership.

Can a partnership grant a floating charge over its assets?

The answer to the question depends on the type of partnership:

General partnership

A general partnership has no separate legal identity and cannot grant a floating charge over its assets. Except where a qualifying agricultural floating charge exists, an administrator may only be appointed to an partnership by either

  1. •

    an order of the court pursuant to paragraph 11 of Schedule B1 to the Insolvency Act 1986 (IA 1986) as modified by the Insolvent Partnership Order 1994 (SI 1994/2421) upon application

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Jurisdiction(s):
United Kingdom
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Key definition:
Enforcement definition
What does Enforcement mean?

The action of compelling a party to comply with a judgment where it has not been complied with voluntarily and the time ordered for compliance has expired.

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