Companies Act 2007 · As enacted · Part XIV · Floating Charges
427. Company may grant floating charge
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
A company may grant a charge to which this
Part of this Act applies (in this Act referred to as a “floating charge”) over the whole or any part of the property and undertaking of the company, for the purpose of securing a debt or any other obligation incurred or to be incurred by the company or any other person.
A floating charge may apply to any property of the company whether held by the company at the time of creation of the floating charge or acquired thereafter, including—
movable and immovable property ;
uncalled capital ;
circulating assets, including cash, stock in trade, raw materials, book debts and other receivables.
A floating charge created under this Part of this Act shall, notwithstanding the provisions contained in any other law, have effect as a security over the property of the company to which it is expressed to apply, in the manner and to the extent specified in this Part—
subject to the provisions of the Registration of
Documents Ordinance (Cap. 117) where applicable ;
and
subject to section 103 of the Mortgage Act (Cap.
89).
Part XV
Receivers and Managers
Part XVI
Registrar-General of Companies and Registration Appointment of Officers
Part XVII
Application of Act to Existing Companies
Part XVIII
Overseas Companies
Part XIX
Advisory Commission
Part XX
Companies Disputes Board
Part XXI
Offences Miscellaneous Offences
Part XXII
Miscellaneous Prohibition of Partnership with More Than Twenty Members
Part XXIII