Legal Developments: A life less ordinary
Case law has set the precedent that a floating charge allows the chargor freedom to deal with assets in the 'ordinary course of business' but exactly what constitutes as ordinary has been a matter of much debate. Andy Moody reports
While case law has established that the main characteristic of a floating charge is the unfettered freedom of the chargor to deal with the charged assets in the “ordinary course of business”, there is conflicting authority on the legal meaning of the phrase. Lawyers drafting security documents containing a floating charge should find helpful the court’s conclusions in Ashborder BV & Ors v Green Gas Power Ltd & Ors  when examining the meaning of ‘ordinary course of business’ in this context.
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