The DTI have confirmed that they will not make any changes in relation to the law of company charges for the time being.
There is no provision in the Company Law Reform Bill (introduced to the House of Lords on 1 December ) except to provide for power to implement changes, and the DTI have been asked by the City of London Law Society to confirm what their intentions are. They have now done so, and although they say that Scotland intends to implement the main recommendation of the Scottish Law Commission through the Bankruptcy and Diligence Bill, the government will continue to consider and discuss with interested parties what changes should be implemented. They have said that they do not want to make any changes before the Land Registry's e-conveyancing is running smoothly. They are putting the issue (for England & Wales at least) "on the back burner".
The delay will come as a relief to most practitioners and clients. Over the next few years, it is likely that we will move to full electronic filing of company charges to bring the system into line with e-conveyancing. At that time it will be necessary to think again about the implications for priorities, Slavenburg issues and the loss of the conclusive certificate, but it seems unlikely the more radical changes to English security law as originally proposed will happen in the near future.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 23/11/2005.
