Section 85 of Companies Act, 2013 – Company’s Register of Charges

  • Updated Till : August 16, 2017

SECTION 85. COMPANY’S REGISTER OF CHARGES

[Effective from 1st April, 2014]

(1) Every company shall keep at its registered office a register of charges in such form and in such manner as may be prescribed, which shall include therein all charges and floating charges affecting any property or assets of the company or any of its undertakings, indicating in each case such particulars as may be prescribed:

Provided that a copy of the instrument creating the charge shall also be kept at the registered office of the company along with the register of charges.

(2) The register of charges and instrument of charges, kept under sub-section (1) shall be open for inspection during business hours—

(a) by any member or creditor without any payment of fees; or

(b) by any other person on payment of such fees as may be prescribed, subject to such reasonable  restrictions as the company may, by its articles, impose.

Applicable Rules

Companies (Registration of Charges) Rules, 2014

[Effective from 1st April, 2014]

Rule 10. Company’s register of charges.—(1) Every company shall keep at its registered office a register of charges in Form No. CHG.7 and enter therein particulars of all the charges registered with the Registrar on any of the property, assets or undertaking of the company and the particulars of any property acquired subject to a charge as well as particulars of any modification of a charge and satisfaction of charge.

(2) The entries in the register of charges maintained by the company shall be made forthwith after the creation, modification or satisfaction of charge, as the case may be.

(3) Entries in the register shall be authenticated by a director or the secretary of the company or any other person authorised by the Board for the purpose.

(4) The register of charges shall be preserved permanently and the instrument creating a charge or modification thereon shall be preserved for a period of eight years from the date of satisfaction of charge by the company.

Rule 11. Register open for inspection.—The register of charges and the instrument of charges kept by the company shall be open for inspection—

(a) by any member or creditor of the company without fees;

(b) by any other person on payment of fee.

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