taxguru.in-FAQs on Creation Modification Satisfaction of Charge Companies Act 2013-converted

1. FAQs on Creation, Modification, Satisfaction ofCharge | Companies Act,2013 • taxguru.in/company-law/faqs-creation-modification-satisfaction-charge-companies-act-2013.html • What is meaning of Charge? [Sec 2(16)] • ‘Charge’ means an interest or lien created on the property or assets of a company orany of its undertakings or both as security and includes amortgage. • Which Charges are to be registered and to be registered by whom? [Sec 77(1) &78] • It is the duty of every Company to register the Chargescreated: • within or outsideIndia; • on its property or assets or any of itsundertakings; • whether tangible orotherwise; • within 30 days of creation ofCharge. • However, when a Company fails to register the Charge within 30 days it can stillregister Charge till further 30 days by paying additional fees. Further if the Charge is stillnot • registered the Registrar may, on an application, allow such registration to be madewithin a further period of sixty days after payment of such advaloremfees. • Where a company fails to register the charge within the period of thirty days of Creation, the person in whose favor the charge is created may apply to the Registrar forregistration of the charge along with the instrument created for the charge, within a period of fourteen days after giving notice to the company, unless the company itself registers the charge or shows sufficient cause why such charge should not be registered, allow such registration on payment of suchfees. • Provided that where registration is effected on application of the person in whosefavor the charge is created, that person shall be entitled to recover from the company the amount of any fees or additional fees paid by him to the Registrar for the purposeof • registration ofcharge.

2. What shall be effect of registration ofCharge? • Where a charge is registered with the Registrar, he shall issue a certificateof • registration of such charge to the company and, as the case may be, to theperson in whose favor the charge iscreated. • Under what conditions the registration of Charge is mandatory other thanon itsCreation? • The Conations are asunder: • a company acquiring any property subject to a charge within the meaning ofthat section;or • any modification in the terms or conditions or the extent or operation of anycharge registered. • When a are the points to be kept in mind related to Register ofCharge? • The Registrar shall, in respect of every company, keep a registercontaining particulars of the charges registered in such form and in Form CHG7. • The register shall be open to inspection by any person on payment offee • When a Charge Satisfaction is to be reported to the Registrar and bywhom? • A company shall give intimation to the Registrar, of the payment or satisfactionin full of any charge registered within a period of thirty days from the date of such payment orsatisfaction. • However, Registrar may, on an application by the company or the charge holder, allow such intimation of payment or satisfaction to be made within a period ofthree hundred days of such payment or satisfaction on payment of such additionalfees. • What is/are the Punishment for Contravention non-Registrationof • Creation/Modification/Satisfaction/ maintenance for Register ofCharge?

3. If any company is in default in complying with any of the provisions related to Charge, the company shall be liable to a penalty of five lakh rupees andevery officer of the company who is in default shall be liable to a penalty of fiftythousand rupees. If any person wilfully furnishes any false or incorrect information or knowingly suppresses any material information, required to be registered, he shall be liablefor action under section447. List of Form Related to Charges Name Particulars of Forms CHG1 Application to register the creation or modification of charge (otherthan debentures) CHG2 Certificate of registration ofcharge CHG3 Certificate of modification ofcharge CHG4 Intimation to the Registrar regarding particulars for the satisfaction ofcharge CHG5 Certificate of registration of satisfaction of thecharge CHG6 Notice of appointment or cessation of a receiver or amanager CHG7 Register of charges created, modified and satisfaction by thecompany CHG8 Application to Central Government requesting an extension of time to file details of registration of creation or modification or satisfaction of chargeas well as rectification any omission or misstatement of anydetails CHG9 Application for registering the creation or modification of chargefor debentures including itsrectification ****** (Author – CS Nayan Pitroda proprietor of Pitroda Nayan & Co., Company Secretaryin Practice can be contacted at +91 8866021210 and/ [emailprotected]) Tags: Companies Act, Companies Act 2013,FAQs Kindly Refer to Privacy Policy & Complete Terms of Use andDisclaimer. AuthorBio

4. Name: CSNayanPitroda Qualification: CS Company: Pitroda Nayan & Co. Location: Ahmedabad, Gujarat, India Member Since: 06 Apr 2020 | Total Posts:9 View Full Profile My PublishedPosts Loan and Investment by Company | Section186 Internal Audit of Company(FAQs) Declaration of Dividend (FAQs) Change in Name of Company –FAQs Issue of Bonus Shares |Section 63 | Companies Act,2013 View More PublishedPosts Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects. Join Taxguru Group onTelegram TELEGRAM GROUPLINK More Under Company Law «PreviousArticle Next Article» OneComment Leave aComment Your email address will not be published. Required fields are marked *