A fixed charge is a security interest attached to specific, identifiable assets such as land, buildings or machinery. The borrower is restricted from selling or disposing of these assets without obtaining the lender’s approval. This type of charge grants the lender a direct claim over the secured asset, allowing immediate enforcement in the event of default. During insolvency proceedings, fixed charges take precedence over floating charges.

A floating charge is a security interest over assets that fluctuate in the ordinary course of business, such as inventory, receivables and cash. Unlike a fixed charge, the borrower is free to use, sell or trade these assets until a triggering event (e.g., default or liquidation) causes the charge to "crystallise" into a fixed charge, restricting further use. Floating charges rank below fixed charges during insolvency priority.

Before submitting the charge for registration, the company must prepare and compile the necessary documents. These include a notice of Statement Of Particulars To Be Lodged With Charge pursuant to Sections 352(1), 354 & 356(1) of the Companies Act 2016; an Instrument Creating the Charge, which is a legally binding document outlining the terms and conditions of the charge, signed by both the company and the lender (chargee); and a Board Resolution approving the creation of the charge.

The prepared documents must be submitted to CCM within 30 days from the date the charge is created. Submission needs to be done physically at the CCM office and accompanied by a prescribed fee by CCM.

Upon successful registration, CCM will issue a Certificate of Registration of Charge as proof that the charge has been duly registered. This certificate serves as official confirmation and may be required for future legal or financial transactions.