Crystallization of a floating charge:-


Crystallization means  conversion of a floating charge into a fixed charge on the assets in the class charged. A floating charge crystallizes when:-

(i)       The company discontinues carrying on business.

(ii)     The company goes into liquidation

(iii)    A receiver is appointed for.

(iv)   A default is made in paying the principal on interest and the holder or the charge brings an action to enforce his security specified in the deed.

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