Fixed Charges Over Book Debts: An Analysis of Agnew V Commissioner of Inland Revenue

Abstract

This article discusses the use of fixed charges over book debts as a form of security in the context of the decision of the Privy Council in the case of Agnew v Commissioner of Inland Revenue. It analyses the views expressed in the judgement in the light of the historical development of charges and the theoretical frameworks within which charges operate. More specifically, the article looks at the 'two-stage process' for classifying charges as propounded in the case and discusses its relevance and applicability. There is also a discussion of whether it is conceptually possible to create fixed charges over book debts.

Keywords: Corporate charges, Company law, Corporate legislation, Book debts