▲Identification of charge as fixed or floating
It is not always immediately apparent whether a charge is fixed of floating. Chargees often to do not wish to identify a charge as being floating when it was created since this may get paid later than certain preferential debts in insolvency proceeding.
A charge contract may declare the charge as fixed，or fixed and floating，whether it is or not ，the label attached by parties in this way is not a conclusive statement of the charge’s legal nature
The general rule is that a charge over assets will not be registered as fixed if it envisages that the company will still be able to deal with the charged assets without reference to the chargee
▲What actor creditor can take if the company defaults payment ？
A）A creditor who petitions on the grounds of the company’s insolvency must show that the company is unable to pay its debts. There are three permitted ways to do that:s123
a creditor to whom the company owes more than ￡750 serve on the company at is registered office a written demand for payment and the company neglects，within the next 21 clear days， either to pay the debt or to offer reasonable security for it.
If the company denies it owes the amount demanded on apparently reasonable grounds ，the court will dismiss the petition and leave the creditor to take legal proceedings for debt.
B) a creditor obtains judgement against the company for debt,and attempts to enforce the judgement but is unable to obtain payment，because no assets of the company have been found and seized
C) a creditor satisfies the court that，taking into account the contingent and prospective liabilities of the company，it is unable to pay its debts。The creditor may be able to show this in one of two ways：
1）by proof that the company is not able to pay its debts as they fall due -the commercial insolvency test
2）by proof that the company’s assets are less than its liabilities -the balance sheet test
▲Power of an administration receiver
An administration receiver is automatically given a long list of statutory power，unless the debenture provides to the contrary（schedule 1and s 42IA）. These include powers to carry on business，borrow money and sell property
Unlessappointed by the court，the receiver is an agent of the company unless or until it goes into liquidation ：s33IA.As agent:
He is personally liable on contracts made in the course of his duties as receiver
He is entitled to an indemnity for that liability out of the company’s assets
He can bind the company by his acts
