Write the short notes on the following: Inspection of Register of Charges.

CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · June 2021
Write the short notes on the following: Inspection of Register of Charges.

Answer & Explanation:

Section 85 of the Act read with rule 10 of the Companies (Registration of Charges) Rules, 2014 provides that every company shall keep at its registered office a register of charges in Form CHG-7, 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 in the Rules. It has been 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. The register of charges and instrument of charges, kept under this section shall be open for inspection during business hours: By any member or creditor without any payment of fees; or By any other person on payment of such fees as may be prescribed. The Inspection shall be subject to such reasonable restrictions as the company may, by its articles, impose.

Topics: Companies Act, 2013

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