Friday, November 16, 2018

Create Charge on Company Assets under Companies Act 2013

Create Charge on Company Assets under Companies Act 2013

Definition Companies Act 2013:- Section 2(16) “Charge” means an interest or lien Created on the property or assets of the company or any on its undertaking or both as security include a mortgage.

-: Registration of charge:-

Companies Act, 2013:- Section 77 levied duty primarily on the company creatinga charge and to register charge with ROC. Company Creating a Charge,

"Register the particular charge signed by the company and the charge holder with it to Registrar"

Section -78 of the companies act, 2013 give benefit to charging holder to the registration of the charge along with the instrument where the company fails to register u/s 77, on such application, within 14 Days after giving notice to the company,
  • unless the company itself register the charge,
  • or company give sufficient reason why such charge should not be registered, allow such registration on payment of such fees as may be prescribed.
In such case, charge holders have the right to incurred expense from the company.

-: Form to be filling for Charge registration:-

A company shall give intimation to Registrar in e-form CHG-4, of the payment or satisfaction in full of any charge registered under this Chapter within a period of 30 days from the date of such payment or satisfaction.

If fails to Register charge within 300 days:-

If the particulars creation/modification/satisfaction of charge is not filed within the period of 300 days, as mentioned above, only the Central Govt. has the power to condone such delay. An application for condonation of delay u/s 87 shall be filed with the Central Government in Form No.CHG-8 along with the prescribed fee. The order passed by the Central Government u/s 87 shall be required to be filed with the Registrar in e-Form No. INC-28 along with the fee as per the conditions stipulated in the said order.

-: The issue of certificates by ROC IN:-

Register of Charges must be maintained in CHG-7

Register of charge and instrument of charges shall be open for inspection

-: Punishment for the contravention:-

– punishable with fine which shall not be less than one lakh rupees but which may extend to ten lakh rupees.

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