Section 452 CAMA 2020

Section 452 Companies and Allied Matters Act is about Power to appoint by holder of floating charge. It is under Chapter 18 (Administration of companies: nature of administration) of the Act.

(1) Subject to section 450 of this Act, the holder of a floating charge in respect of a company’s property may appoint an administrator of the company.

(2) For the purposes of subsection (1), a floating charge qualifies if it is created by an instrument which—

(a) states that this section applies to the floating charge ;

(b) purports to empower the holder of the floating charge to appoint an administrator of the company ; or

(c) purports to empower the holder of the floating charge to appoint a receiver within the meaning of this Part or where this Part is not applicable,the relevant provisions of this Act.

(3) For the purposes of subsection (1), a person is the holder of a floating charge in respect of a company’s property if he holds one or more debentures of the company secured by—

(a) a floating charge which relates to the whole or substantially the whole of the company’s property ;

(b) a number of floating charges which together relate to the whole or substantially the whole of the company’s property ; or

(c) charges and other forms of security which together relate to the whole or substantially the whole of the company’s property and at least one of which is a floating charge.

(4) Without prejudice to the specific terms of the instrument creating a charge, any contrary or conflicting provision of this Act or other enactments,the appointment of a receiver or manager by the holder of a floating charge isto all intents and purpose equivalent to the appointment of an administrator,and the provisions of this Part are applicable to the person qualified to act as an insolvency practitioner and appointed under the relevant instrument by the holder of a floating charge