Illingworth v Houldsworth (1904) ruled that a company’s assignment of present and future book debts to guarantors, without registration, constituted a "floating charge" under the then Companies Act 1900. The court affirmed that such a charge allows the company to carry on its business ordinarily.
Floating Charge Definition: The case clarified the concept of a "floating charge," describing it as a security that hovers over fluctuating assets, allowing the company to use those assets in its regular business operations until the charge crystallises upon a specific event.
