One of the issues which the Project is considering is the abolition of the distinction between a fixed and floating charge, given the uncertainties relating to the distinction which exist in practice. A number of consequences currently flow from the distinction in insolvency. This group is considering the alternative ways in which these issues could be addressed in insolvency if the distinction were to be removed in order to inform the wider work of the project.
As part of this work, this group has prepared a response to the UK Insolvency Service’s consultation entitled ‘A Review of the Corporate Insolvency Framework: A Consultation on Options for Reform.’
The law should enable those taking interests in assets to secure obligations to be able to enforce their security effectively. The group is considering whether there is a case for codification of the law relating to enforcement and, if the case is made out, whether there should be codification of the existing position or reform of the law as it applies at the moment.
Many receivables financiers consider that the use of clauses preventing assignment of receivables increases costs and makes it difficult for some businesses to raise finance which would otherwise be available. The group is looking at whether such clauses should therefore be made ineffective or whether other consequences of doing so mean that a different approach should be adopted.
The current law
We would like to know what you find difficult, inefficient or problematic. Please do email us with your views.