【分析解答题】

AB

C、Ltd is a company running a computer retailing business. Recently, a bank has offered to advance to the company a sum of money by way of a charge.The charge demands the company to use all the computer stock of the company as security for repayment. The charge document also provides that the charge will be crystallised if the total liabilities of the company should exceed HK$5 million.Required:In relation to the loan capital of a company:Advise the company as to the nature of the charge and the consequence if the liabilities of the company should exceed HK$5 million. (10 marks)