Section 245(4)

Where a company creates a floating charge at a time mentioned in subsection (3)(b) and the person in favour of whom the charge is created is not connected with the company, that time is not a relevant time for the purposes of this section unless the company— is at that time unable to pay its debts within the meaning of section 123 in Chapter VI of Part IV, or becomes unable to pay its debts within the meaning of that section in consequence of the transaction under which the charge is created.

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Source: legislation.gov.uk · retrieved 2026-09-04