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What is the procedure for registering a debenture, what are the time frames in which it must be done and should I seek legal help with this?
What is the procedure for registering a debenture, what are the time frames in which it must be done and should I seek legal help with this?
Companies regularly fail to register debentures either properly, or within time by Companies House.
Getting a solicitor involved is always advisable. A debenture is a charge over the assets of a company. Normally a debenture should be drafted so that it is executed by the client company but delivered to us undated.
The form (395) is designed to allow this and one of the directors of the company should sign Form 395 and deliver it to us, so we can register the charge. When everything is agreed we can then agree the date on the debenture and notify the client company of the date inserted. At that point the deed becomes effective.
A debenture must then be registered at Companies House within 21 days of execution. If not so registered, the debenture becomes void.
It is not uncommon for the application to register a Debenture to be rejected and if this occurs it has to be resubmitted, still within that original 21 days. It is therefore vital that the documentation be prepared very carefully, and very precisely, and second that it must be sent to Companies House on the day it is deemed executed so as to allow the maximum time for resubmission if there are any complications.
The company secretary should ensure that the Charge or debenture is immediately entered in the company's register of debentures, and that a copy of it must be available for inspection at its registered office.
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