Outline the circumstances under which a floating charge will crystallise
ANSWER
• Default in payment of the principal or interest when due and payable provided the chargee takes some step to enforce the security.
• Commencement of recovery proceedings against the company.
• Appointment of a receiver by a chargee or the court upon application.
• Commencement of winding up.
• Occurrence of an event contemplated by the debenture.
• If the company ceases to carry on business.
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