Floating charge in common law jurisdiction

This paper examined the charge of circulating assets in common law jurisdiction. The aim was to know the way and basis that it is constituted and to find out its profits for creditors and also to find out its meaning and its impacts in market. The conclusion was that floating charge provides an appropriate security and benefits for the chargee and chargor، where chargee can achieve his benefits and chargor can carry on his ordinary course of business. In this kind of charges third parties’ rights have been supporting as well. In addition the assets in the ordinary course of business are the main part of the company’s assets and depositing them as a floating charge will increase the capital of the company، will improve the efficiency of economy and will give creditable security to banks and financial institutions and it will have benefits for economy.