The long awaited changes to the Companies House charge registration regime have finally started to happen.
The Department for Business, Innovation and Skills (BIS) recently issued its latest proposals on amendments to the provisions governing registration of company charges under the Companies Act 2006. The deadline for comments was 30 September 2011.
The main objective of the proposals is to provide a single UK-wide charge registration regime that applies to all UK companies (including Scottish companies) and limited liability partnerships regardless of the location of the charged asset or the law used to create the security. Electronic filing will also be possible.
The majority of the changes (when finalised) are not expected to come into force until October 2012 at the earliest. One change relating to overseas companies, however, took effect on 1 October 2011.
Before 1 October 2011, overseas companies with a registered UK establishment were required to register certain charges at Companies House pursuant to The Overseas Companies (Execution of Documents and Registration of Charges) Regulations 2009. Failure to do so would result in the charge being void against a liquidator, administrator or creditor of the overseas company, and the money secured by the charge would immediately become payable. From 1 October 2011 this requirement has been abolished such that overseas companies are no longer required to register charges at Companies House which are created on or after that date.
Click here for The Overseas Companies (Execution of Documents and Registration of Charges) (Amendment) Regulations 2011 which implement the abolition of the registration requirement.
Click here for our more detailed briefing on the latest BIS proposals.