New Company Charges – April 2013
From 6 April 2013, the government is introducing a new regime for the registration of company charges. Key changes are :-
• All charges granted by a UK registered company must be registered at Companies House (with a few express exceptions*).
• Electronic registration (in addition to paper filing) will be introduced. A certified copy of the charging document must be provided to Companies House, and will appear on the public record. For those who file electronically the certified copy will need to be in PDF form.
• Registration must take place within 21 days of the creation of the charge. Failure to register within the time limit will no longer incur criminal sanctions. However, failure to register will continue (as at present) to make a charge void against a liquidator, an administrator and any creditor of the company.
• Each charge will be allocated a unique reference code.
Form MR01 will replace the existing form MG01. There will be a whole series of forms MR01-MR10, which will replace the existing ‘MG’ series. On the 6th April 2013, we will upload the new forms to the ‘Free’ section of the Simply-docs website.
*Exceptions include charges in favour of a landlord on a cash deposit given as security for a land lease (‘rent deposits’), and charges created by Lloyd’s members in connection with underwriting business.
• All charges granted by a UK registered company must be registered at Companies House (with a few express exceptions*).
• Electronic registration (in addition to paper filing) will be introduced. A certified copy of the charging document must be provided to Companies House, and will appear on the public record. For those who file electronically the certified copy will need to be in PDF form.
• Registration must take place within 21 days of the creation of the charge. Failure to register within the time limit will no longer incur criminal sanctions. However, failure to register will continue (as at present) to make a charge void against a liquidator, an administrator and any creditor of the company.
• Each charge will be allocated a unique reference code.
Form MR01 will replace the existing form MG01. There will be a whole series of forms MR01-MR10, which will replace the existing ‘MG’ series. On the 6th April 2013, we will upload the new forms to the ‘Free’ section of the Simply-docs website.
*Exceptions include charges in favour of a landlord on a cash deposit given as security for a land lease (‘rent deposits’), and charges created by Lloyd’s members in connection with underwriting business.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.