State the provisions for registration of charges (created/modified) with the Registrar of Companies under the Companies Act, 2013.
CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2019
State the provisions for registration of charges (created/modified) with the Registrar of Companies under the Companies Act, 2013.
Answer & Explanation:
Sections 77 to 87 made under chapter VI of the Companies Act, 2013 provide for the registration of charges in so far as any security on the company's property or undertaking is created, modified or satisfied thereby. Section 77(1) of the Companies Act, 2013 provides that it shall be the duty of every company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the particulars of the charge signed by the company and the charge-holder together with the instruments, if any, creating or modifying such charge in E-Form CHG-1 (for other than debentures) or E-Form CHG-9 (for debentures including rectification), on payment of such fees and in such manner as may be prescribed in the Rules, with the Registrar within 30 days of from the date of creation/modification of charge. Provided that the Registrar may, on an application by the company, allow such registration to be made: (a) in case of charges created before the commencement of the Companies (Amendment) Ordinance, 2019, within a period of three hundred days of such creation; or (b) in case of charges created on or after the commencement of the Companies (Amendment) Ordinance, 2019, within a period of sixty days of such creation, on payment of such additional fees as may be prescribed. Provided further that if the registration is not made within the period specified: (a) in clause (a) to the first proviso, of Section 77 of the Companies Act, 2013 the registration of the charge shall be made within six months from the date of commencement of the Companies (Amendment) Ordinance, 2019, on payment of such additional fees as may be prescribed and different fees may be prescribed for different classes of companies; (b) in clause (b) to the first proviso, of Section 77 of the Companies Act, 2013, the Registrar may, on an application, allow such registration to be made within a further period of sixty days after payment of such ad-valorem fees as may be prescribed. As per Sub-rule (3) of Rule (3) of the Companies (Registration of Charges) Rules, 2014, where the company fails to register the charge in accordance with Sub-rule (1) of Rule (3) of The Companies (Registration of Charges) Rules, 2014, with in the period specified in section 77 on payment of additional fee or advalorem fees as prescribed in the Companies (Registration office and fees) Rules, 2014. Where a charge is registered with the Registrar under sub-section (1) of Section 77 of the Companies Act, 2013, he shall issue a certificate of registration of such charge in such form and in such manner as may be prescribed to the company and, as the case may be, to the person in whose favor the charge is created.
Topics: Charges
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