What are advantages and disadvantages of a floating charge to a debenture holder?

 Capacity to appoint receiver or manager in the event of default.
 It charges both existing and future assets of the company.
 Upon crystallization, the chargee becomes entitled to sell the security.
 Until crystallization value of security remain uncertain.
 Other interests e.g. landlord‟s distress for rent have priority in the satisfaction of
claims.
A fixed charge created subsequent to a floating charge has priority in the satisfaction of claims
A floating charge created within 6 months before the commencement of winding up is deemed to be a fraudulent preference and is void.
A floating charge created within 12 months before the commencement of winding up is
invalid unless it is proved, that the company was solvent immediately after its creation.

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