Re Bond Worth Ltd

Re Bond Worth Ltd [1980] Ch 228 is a UK insolvency law case, concerning retention of title clauses.

Bond Worth Ltd went into receivership when a large sum of money was owing to Monsanto Ltd under various contracts containing the "title" clause.

The joint receivers issued summons for determination claiming that (1) although the clause referred to "equitable and beneficial ownership" it did not have the effect of creating a bare trust for the benefit of the sellers, but rather it created a floating equitable charge in favour of the sellers; and (2) such a floating charge created by the buyer company would therefore be registerable, and so was void if not registered (as was in fact the case).

Notable counsel who appeared included Jeremiah Harman QC and Elizabeth Gloster.

Because the floating charge was created by the buyer company and therefore registrable, it was void for non-registration.