Saturday 28 January 2012

Procedure - Registration of charge on the assets of the Company




1)      It must be remembered that ‘charge’ includes a mortgage and it should be filed whether it is created inside or outside India and relates to property situated either inside or outside India  { Section 124 }

2)      Check as to whether your charges fall under any one of the following categories : 

Ø  A charge for the purpose of securing any issue of debentures.
Ø  A charge on uncalled share capital of the company
Ø  A charge on any immovable property, whether situate or any interest therein;
Ø  A charge on any book debts of the company;
Ø  A charge, not being a pledge, on any movable property of the company ;
Ø  A floating charge on the undertaking or any property of the company including stock in trade;
Ø  A charge on calls made but not paid ;  
Ø  A charge on a ship or any share in a ship;
Ø  A charge on goodwill, on a patent or a license under a patent, on a trade mark or on a copyright or a license under a copyright; 


3)      In case the charge falls under any of the categories above, then file particulars of the charge with the concerned (ROC) within 30 days of making the charge in  {E form no 8} with the following attachments.

Ø  Copy of the instrument creating charges.
Ø  Other optional attachments as required. (resolution )


4)      Ensure that the e-form is digitally signed by the authorised signatory of the banker along with the authorised signatory of the company (Managing Director or director or secretary) and certified by PCS or PCA.

5)      Make the payment of requisite fees prescribed by the Companies { Schedule X of the Companies Act }

6)      If due to unavoidable circumstances, it is not possible to file the particulars of the charge within 30 days, then file it latest within 60 days of creating the charge after satisfying the ROC the reason for delay, and after payment of such additional fee for not exceeding ten times the amount of fee specified in {Schedule X}  as the ROC may determine.

7)      Verify the copy of the instrument or deed before its filing, in the following manner :- 

Ø  If the instrument or deed creating the charge relates solely to property situate outside India, by a certificate either under the seal of the company or under the hand of the director or manager or secretary of the company or under the hand of some person interested in the mortgage or charge on behalf of any person other than the company, stating that it is a true copy.

Ø  If the instrument or deed creating the charge relates, whether wholly or partly, to property situate in India, by a certificate of the director, manager or secretary of the company stating that it is a true copy or by a certificate of a public officer given under and in accordance with the provisions of section 76 of the Indian Evidence Act, 1872

8)      In the case of a charge created outside India and comprising solely of property situated outside India, file the particular of the charge in [ E form no 8]  within 30 days after the date on which the instrument creating or evidencing the charge or a copy thereof could, in due course of post and if despatched with due diligence, have been received in India.

 NOTE 
The object or purpose of registration of charges with the Registrar of Companies is public notice; to ensure the means of notice to those who contemplate giving credit to the company. The object of registration is to prevent people advancing money or purchasing in the dark. The registration is provided so that creditors may have some notion of how far the property of the company is unencumbered. This purpose is sought to be achieved by requiring the companies and the Registrars to register the charges in their registers, and make them available to the public for inspection. The registration also has the object of preventing a fraudulent and belated claim of a charge in the event of a company's liquidation. Thus, the object of registration is mainly to give information to future creditors as to the extent of the company's indebtedness and the consequent amount of credit that they can safely give to the company.








No comments:

Post a Comment