Module 2 · Chapter 5

Shares, Receivables, Accounts and Insurances

Shares, unpaid invoices, bank accounts and an insurance policy are all claims against someone else. This chapter shows how the Debenture secures each one, and the extra step each needs to work.

≈ 11 min read 8-question test

In this chapter

  • How the Bank holds the Tooling shares, and who keeps the dividends
  • Why a charge over invoices called fixed can turn out to be floating
  • What makes security over a bank account and an insurance policy work

5.1Security over a claim in one paragraph

Four of the Company's assets are claims against someone else. They are its shares in Tooling, the money its customers owe, the money in its bank accounts and its insurance policy. A claim cannot be locked away like a machine.

So each one needs a step that makes the security bind the person who owes the claim, and anyone who deals with it later. These steps are called perfection. Every charge needs form MR01 at Companies House within 21 days (Chapter 6). Each asset in this chapter needs one step more.

Key point

Each kind of claim needs its own extra step. Shares need the certificate and a signed transfer form. Invoices and accounts need control of the money. A policy needs a notice to the insurer.

Also in this chapter

  1. How the Bank holds the Tooling shares
  2. Who keeps the dividends and the votes
  3. Why a fixed charge over invoices can turn out floating
  4. Bank accounts: a charge with nobody to tell
  5. The insurance policy: an assignment and a notice
  6. Your job

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