Constructive Notice and Company Charges

Abstract

The law relating to the registration and priorities of charges has generated much confusion over the years. One of the purported objectives of a registration system is to provide certainty to lenders, yet it is by no means clear that this objective is entirely satisfied at present. While this article considers the law in relation to the registration and priorities of charges in Hong Kong, the discussion may be of interest to those examining the English rules in the area, as the two regimes are similar to a large extent. This article will consider some problematic areas that have arisen in relation to constructive notice of the contents of company charges and then argue that the recent law reform proposals in Hong Kong may not go far enough to address these problems. Finally, suggestions will be made on how the system for the registration of company charges may be reformed to adequately address these problems.