when the floating charges are fixed

                                                   Crystallization of floating charges

Crystallization means fixation. The floating charges have been crystallized when it become fixed. The company has right to carry on business with the assets over which floating charge has been created until the property on which floating charge is created is specific. Under the following circumstances property on which floating charge is created has been crystallized and security becomes fixed:

1.       When the company goes into liquidation.

2.       When the company ceases to carry on its business.

3.       When the creditors or the debenture holders take steps to enforce their security e. g. by appointing receiver to take possession of the property charged.

4.       On the happening of the event specified in the deed.