Section 150, The Companies Act, 2009

(1) “A floating charge” means an equitable charge overthe whole or a specified part of the company’s undertakings and “assets”, including cash and uncalled capital of the company both present and future, but the charge shall not preclude the company from dealing with such assets until– (a) the security becomes enforceable and the holder thereof, pursuant to a power in that behalf in the debenture or the deed securing the debenture appoints a receiver or manager or enters into possession of the assets; (b) the court appoints a receiver or manager of the assets on the application of the holder; (c) the company goes into liquidation. (2) On the happening of any of the events mentioned in subsection (1), the charge shall be deemed to crystallise and to become a fixed equitable charge on such of the company’s assets as are subject to the charge. (3) If a receiver or manager is withdrawn with the consent of the chargee, or the chargee withdraws from possession before the charge has been fully discharged, the charge shall then be deemed to cease to be a fixed charge and again to become a floating charge. “floating” and “fixed” Meetings of 102 103