Commentary on Sections Part 2 – Security over Moveable Property Ranking of pledges etc. Section 61 – Amendment of Companies Act 1985 and of Insolvency Act 1986
281.This section amends the Companies Act 1985 and the Insolvency Act 1986 to give effect for statutory pledges to the general rule that a real right in security (broadly, a ‘fixed charge’ for insolvency purposes) will, if created prior to the attachment of a floating charge, rank above the floating charge. It does so in each case by amending the relevant definitions of “fixed security” in those Acts, with the effect that a fixed security includes a statutory pledge.