The crystallisation of floating charges: rethinking the conceptual framework
Quinn, John
(2020)
The crystallisation of floating charges: rethinking the conceptual framework.
Journal of Corporate Law Studies, 20
(1).
pp. 179-198.
ISSN 1473-5970
Crystallisation is the name given to the conversion of a floating charge into a fixed
charge. While much has been written on how charges are classified as fixed or floating and on
the theoretical nature of the floating charge, crystallisation is, by comparison, less developed.
This article offers three main contributions. First, it draws a clear distinction between two types
of crystallisation: automatic and express. Second, it applies the theoretical literature on floating
charges to crystallisation and examines the different meanings crystallisation takes under these
theoretical frameworks. Finally, it makes an original argument on the effectiveness of express
crystallisation clauses. The claim is that because a crystallised floating charge establishes the
same proprietary interest as a fixed charge ab initio, the legal criteria necessary to create a fixed
charge should also be necessary for the triggering of an express crystallisation clause to be
effective in crystallising a charge.