The High Court of Northern Ireland has reaffirmed the strict consequences of failing to register a charge within the statutory 21-day period under the Companies Act 2006, particularly where liquidation intervenes.
Key facts
A lender advanced £500,000 secured by a charge over company property. Although an application to register the charge was initially submitted in time, it was rejected due to an error. A corrected form was sent, but no confirmation of registration was received. The solicitors assumed the charge had been registered.
In fact, the second application had also been rejected (presumably because, when that amended application had been sent, the 21-day period had passed). Over a year later – after the borrower company had…