Where a company is being wound up, a floating charge on the undertaking or property of the company created within three months of the commencement of the winding-up shall, unless it is proved that the company immediately after the creation of the charge was solvent, be invalid, except to the amount of any cash paid to the company at the time of or subsequently to the creation of, and in consideration for, the charge, together with interest on that amount at the current bank rate.
Companies and Allied Matters Act 2020 · Part B · Chapter 24
Section 662Effect of floating charge
Cite as: Companies and Allied Matters Act 2020, section 662
What this section means
From the guide: Who gets paid first in a winding up under CAMA 2020
- A floating charge created within three months before the winding up began is invalid unless the company was solvent immediately afterwards, except for cash paid to the company for the charge, with interest (section 662).
Read the whole subject
Source: Companies and Allied Matters Act 2020 (Act No. 3 of 2020), Official Gazette No. 124, Lagos, 10 August 2020. General information, not legal advice.