Creation, Registration and Satisfaction of charges
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Free sample — 8 of 66 rapid-fire Q&A cards.
What is a 'charge' in the context of company law and banking?
A charge is a security interest created on the assets or property of a company in favour of a creditor (such as a bank) to secure repayment of a debt or obligation.
What is Form CHG-1 used for under the Companies Act, 2013?
Filing particulars of creation or modification of charge with ROC.
Which Act governs the creation and registration of charges by companies in India?
The Companies Act, 2013 governs the creation, registration, modification, and satisfaction of charges by companies in India.
What is the time limit for the charge-holder to register a charge if the company fails to do so?
Charge-holder can register within 30 days after the company's default period.
Within how many days must a company register a charge with the Registrar of Companies (ROC) after its creation?
A company must register a charge with the ROC within 30 days of its creation; a further extension of 30 days (total 60 days) is permitted with additional fees under the Companies Act, 2013.
What is the maximum extended period allowed by the Registrar for registration of a charge?
Registrar may allow extension up to 300 days from date of creation of charge.
What is the consequence of non-registration of a charge created by a company?
A charge that is not registered becomes void against the liquidator and any creditor of the company, meaning the lender loses priority and secured status against those parties.
What certificate is issued by the ROC upon registration of a charge?
ROC issues a Certificate of Registration of Charge.
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