Explain whether a Floating charge attached to the company's property generally remains dormant till it crystallizes or becomes fixed.

A floating charge attached to the company's property generally remains dormant till it crystallizes or becomes fixed. The company has a right to carry on its business with the help of assets over which a floating charge has been created till the happening of some event which determines this right. Crystallization is the process by which a floating charge converts into a fixed charge. A floating charge crystallises and the security becomes fixed in the following cases: when the company goes into liquidation; when the company ceases to carry on its business; when the creditors or the debenture holders take steps to enforce their security e.g. by appointing receiver to take possession of the property charged; on the happening of the event specified in the deed. In the aforesaid circumstances, the floating charge is said to become fixed or to have been crystallised. Until the charge crystallises or attaches or becomes fixed, the company can deal with the property so charged in any manner it likes. Once crystallized, the security cannot be sold, and the lender may take possession of it.