The Registration of Charges is always one of the most used but controversial and practically ignored chapters of the Indian company law. I personally never understood the utility of such registration except for a limited public notice in an era of Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI). Recent amendment in the law governing the registration of charge makes it more complicated and less user-friendly. Let us try to understand the amended law.
A Charge under the Companies Act, 2013 means an interest or lien created on the property and assets of the company or any of its undertakings or both as security and includes mortgage.
REGISTRATION OF CHARGES (SECTION 77):
Every company creating a charge shall register the particulars of charge signed by the company and its charge – holder together with the instruments creating such charge with the Registrar within thirty days of its creation.
Posted in Chapter VI - CA2013, Companies Act 2013, Governance and Responsibility
Tagged Charge, Charge – holder, Companies Act 2013, Companies Bill 2012, CorpGov, CorpLaw, Corporate Governance, Corporate Law, Creation of Charge, India, Inspection of Register of charges, Legal Reforms, Manager, Ministry of corporate affairs, Modification, Receiver, Rectification of charges, Reforms, Register of Charge, Registration of Charge, Satisfaction of Charge