Creditor Right System of Company Law Coursework

Creditor Right System of Company Law - Coursework Example Crystal to the company towards working capital must be registered with companies within a period of 21 days. â€Å"If a registrable charge is not registered in time, then it is void against the liquidator or administrator and any creditor of the company. This means that the debt for which the charge was given will remain payable, but it will be unsecured.† (Company charges, 2009, p.7). Thus, in this case, it is assumed that the charges on debentures and debts have been registered and, therefore, they need to be paid first before setting the claims of the unsecured creditors and the equity shareholders of the company. It is common knowledge that the corporate entity, Crystal Chandeliers Ltd, is a limited company and thus, except under exceptional circumstances, the shareholders, Ms.Crystal, and her sons would be liable only for the value of unpaid shares payable by them, or in other words, the shares which they hold. Crystal Chandeliers Ltd is a limited liability company the personal assets of the owners are usually protected from business creditors as a matter of law. Shareholders and LLC members have a kind of asset protection called limited personal liability under which it would be difficult to attach.  Normally unsecured creditors would rank the last after all preferential and secured creditors are paid off. But in the event, the charge on the assets are not registered with the Companies House within the prescribed time, it is possible that these would also rank only as unsecured creditors, along with other kinds of unsecured debt holders.