MORTGAGES, DEBENTURES AND RECEIVERS 197 
justitiae, but the Court has discretion to refuse such an order 
in certain circumstances, e.g. if the petition is opposed by the 
majority of creditors and the petitioner would derive no 
substantial benefit from the order [Western of Canada Oil Co., 
L.R. 17 Eq. 1; Chapel House Colliery Co., 24 C.D. 259]. 
A fixed charge is usually given upon the immovable property 
of the company, whilst a floating charge as a rule covers the 
whole of the undertaking and property, including stock, 
book debts and cash of the company and all other property 
not subject to the fixed charge and including also as a rule 
the uncalled capital of the company. 
A floating charge leaves the company free to use the pro- 
perty the subject of the charge as it pleases until the charge 
attaches; that is, it is a charge on the company as a going 
concern, which will not attach until the company ceases 
to be a going concern [Governments Stock Co. v. Manila 
Railway Co. (1897), A.C. 81; re Borax Co. (1901), 1 Ch. 326; 
[llingworth v. Houldsworth (1904), A.C. 355], or until by the 
conditions (if any) of the debenture the floating charge attaches. 
The usual conditions are, if execution or distress is levied 
against the company, or if the company goes into liquidation 
or ceases to carry on business. 
A floating charge does not prevent the company from 
creating mortgages on the property charged, unless there is a 
declaration that the company shall not have power to mort- 
gage in priority to the floating charge (Wheatley v. Silkstone 
Coal Co. (1885), 29 Ch. D. 715; and see Cox-Moore v. Peruvian 
Corporation (1908), 1 Ch. 604]. Even if there is a declara- 
tion that the company has not power to make a mortgage 
in priority to, or pari passu with a floating charge, this 
may be defeated by a legal mortgagee of any property subject 
to the charge other than land who can show that he had 
no knowledge of any clause in the floating charge preventing 
him from having the full benefit of his legal mortgage [English 
and Scottish Investment Co. v. Brunton (1892), 2 Q.B. 700]. 
As regards land, it is thought that the debenture holder will be 
protected by registration under s. 79; for such registration is 
equivalent to registration under the Land Charges Act, 1925 
see s. 10 (5) of that Act], and under s. 198 of the Law of 
Property Act, 1925, a subsequent mortgagee will be deemed to 
have actual notice of the instrument creating the charge for all 
purposes. The company has complete power to deal with the 
property the subject of the floating charge, until the company 
s wound up or a receiver put in [Governments Stock Co. v. 
Manila Railway (1897), A.C. 81; Florence Land Co. (1878), 
to Ch. D 5:71. When a floating charge attaches, the rights of 
Fixed and 
Floating 
Charges.