VALIDITY OF DEFECTIVE LOAN AND SECURITY DOCUMENTATION

摘要

Two recent decisions of the High Court have highlighted the extent to which the Companies Act protects third parties who rely on loan and security documentation which is defective in some way.rnIn Stewart Ford v Polymer Vision Ltd the court considered an application for summary judgment in relation to a company that had entered into a debenture securing monies advanced to the company by a funder. The validity of the debenture was subsequently challenged on the basis that the board meetings at which it was approved had not been properly convened.