§ 402.—(1) Where the registered particulars of a charge created by a company are not complete and accurate, the charge is void, as mentioned below, to the extent that rights are not disclosed by the registered particulars which would be disclosed if they were complete and accurate.
§ (2) The charge is void to that extent, unless the court on the application of the chargee orders otherwise, as against—
- (a) an administrator or liquidator of the company, and
- (b) any person who for value acquires an interest in or right over property subject to the charge, where the relevant event occurs at a time when the particulars are incomplete or inaccurate in a relevant respect.
§ (3) Where a relevant event occurs on the same day as particulars or further particulars are delivered, it shall be presumed to have occurred before those particulars are delivered unless the contrary is proved.
§ (4) The court may order that the charge is effective as against an administrator or liquidator of the company if it is satisfied—
- (a) that the omission or error is not likely to have misled materially to his prejudice any unsecured creditor of the company, or
- (b) that no person became an unsecured creditor of the company at a time when the registered particulars of the charge were incomplete or inaccurate in a relevant respect.
§ (5) The court may order that the charge is effective as against a person acquiring an interest in or right over property subject to the charge if it is satisfied that he did not rely, in connection with the acquisition, on registered particulars which were incomplete or inaccurate in a relevant respect.
§ (6) For the purposes of this section an omission or inaccuracy with respect to the name of the chargee shall not be regarded as a failure to disclose the rights of the chargee.".'.
§ Brought up, read the First and Second time, and added to the Bill.