There will be a debenture or charge document detailing the lending and one of its clauses will set out what happens if the borrower defaults over the loan or otherwise breaches the contract.

On such a default the floating charge will ‘crystyallise’. Crystallisation is the process by which a floating charge converts into a fixed charge. If a company fails to repay the loan or enters Liquidation, the floating charge becomes crystallised or attached to a specific asset or assets.

[See ‘Floating Charge’, Fixed Charge’, ‘Liquidation’ and ‘Director’.]

D

Date of Incorporation

A limited company’s incorporation date is the date it is registered with Companies House. After registration, Companies House adds the newly incorporated business to the Register of Companies.

This is effectively the ’birth date’ of the company, the day it begins its life as a legal entity, separate from its shareholders/members. From this date it can litigate, contract and own property in its own name.

[See ‘Companies House’, ‘Companies House’ and ‘Shareholder’.]

Days for Delivery

Many actions by officeholders (or directors in respect of prospective appointments) require the delivery of a notice to categories of persons (typically creditors), providing certain specified notice periods.

For example, Rule 15.6 Insolvency Rules 2016 states that a request for a physical meeting may be made before or after the notice of the decision procedure or deemed consent procedure has been delivered, but must be made not later than five business days after the date on which the convener delivered the notice of the decision procedure or deemed consent procedure unless these Rules provide to the contrary.