SPECTRUM PLUS: A CRITIQUE
Abstract:In Seibe Gorman & Co Ltd v Barclays Bank Ltd, Slade J held that a company can create a fixed charge over its present and future book debts, provided that the company is prevented from dealing with these assets in the ordinary course of business. However, aspects of Slade J's analysis have been open to question following the Privy Council's advice in Agnew v Commissioner of Inland Revenue (the Brumark case), and both authorities have now been reviewed in National Westminster Bank Plc v Spectrum Plus Ltd. At first instance Morritt V-C declined to follow Siebe Gorman and held that a mere floating charge had been created by the debenture in question, which was substantially the same as the debenture considered in Siebe Gorman as regards the charge over book debts. On appeal, the Court of Appeal took a different view, and held that the debenture in question gave the chargee sufficient control for the charge to take effect as a fixed charge. This comment considers SPECTRUM PLUS and its analysis of Siebe Gorman in the light of Brumark.
Document Type: Research Article
Publication date: January 1, 2004
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