Solicitors Qualifying Examination (SQE) Practice Exa\

Image Description

Question: 1 / 400

Within what time frame must a legal charge (mortgage) be registered at Companies House?

14 days

21 days

The correct answer is that a legal charge (mortgage) must be registered at Companies House within 21 days. This requirement is stipulated under the Companies Act 2006, which mandates that any charge created by a company must be registered to ensure its validity and priority over other creditors.

The 21-day timeframe is essential for maintaining transparency and ensuring that potential lenders and other interested parties can easily access information about the company's financial obligations. If the charge is not registered within this period, it may become unenforceable, meaning that the lender could lose their priority and security interest in the asset in favor of other creditors. Prompt registration is crucial for protecting the rights of the lender and maintaining the integrity of the public register.

Get further explanation with Examzify DeepDiveBeta

30 days

60 days

Next Question

Report this question

Download Solicitors Qualifying Examination (SQE) Practice Exa\ PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy