Security, Guarantees, & Enforcement Risks
Where transaction risk sits. Auditing bank guarantees, floating charges, and asset-backing documentation compliance.
Structuring corporate financing requires auditing security mechanisms. Failing to comply with registration rules or documentation checks can invalidate creditor protections.
1. Registration of Corporate Charges under Cap. 113
Under Cap. 113 Section 90, any charge created on a company's assets must be registered with the Registrar of Companies within 21 days. Non-registered charges are void against liquidators and other creditors.
2. Enforcement Risks of Floating Charges
While floating charges offer flexibility, enforcement through receiver appointment is subject to strict statutory requirements under Cap. 113. Courts closely inspect default triggers and valuation methods.
3. Bank Guarantees and Autonomous Obligations
Bank guarantees represent separate obligations from underlying contracts under Cap. 149. We audit guarantee wording to ensure it functions as an unconditional payment obligation, avoiding injunction blockages.
This briefing is prepared for general informational purposes and does not constitute direct legal advice. Clients are advised to complete independent compliance and conflict verification before making capital commitments.
Request Strategic Counsel
If your organization is facing a complex matter in this practice area, submit an initial briefing for a confidential partner-led conflict review.