The Companies Act 2013 (the Act) is the principal legislation governing the formation, registration, and operation of companies in India. The Act contains provisions relating to the registration of charges created by companies.
Section 77 of the Act provides that every company creating a charge on its assets or properties, whether tangible or intangible, and situated in or outside India, shall file with the Registrar of Companies (ROC) a copy of the instrument creating such charge within thirty days of its creation.
The following are the documents that need to be filed with the ROC for registration of a charge:
- Charge document
- Stamp duty receipt
- Power of attorney, if applicable
- Proof of identity of the chargee and the company
The ROC will issue a certificate of registration of the charge.
The Act provides that a charge created by a company without complying with the registration requirements is void against any person who acquires the property charged for value without knowledge of the charge.
MCQs on Provisions of Companies Act 2013 Relating to Registration of Charges in Banking Securities
- What are the provisions of the Companies Act 2013 relating to registration of charges in banking securities?
- Every company creating a charge on its assets or properties, whether tangible or intangible, and situated in or outside India, shall file with the Registrar of Companies (ROC) a copy of the instrument creating such charge within thirty days of its creation.
- A charge created by a company without complying with the registration requirements is void against any person who acquires the property charged for value without knowledge of the charge.
- The ROC will issue a certificate of registration of the charge.
- All of the above.
The answer is (d). The provisions of the Companies Act 2013 relating to registration of charges in banking securities are that every company creating a charge on its assets or properties, whether tangible or intangible, and situated in or outside India, shall file with the ROC a copy of the instrument creating such charge within thirty days of its creation, a charge created by a company without complying with the registration requirements is void against any person who acquires the property charged for value without knowledge of the charge, and the ROC will issue a certificate of registration of the charge.
- What are the documents that need to be filed with the ROC for registration of a charge?
- Charge document
- Stamp duty receipt
- Power of attorney, if applicable
- Proof of identity of the chargee and the company
The answer is (d). The documents that need to be filed with the ROC for registration of a charge are charge document, stamp duty receipt, power of attorney, if applicable, and proof of identity of the chargee and the company.
- What is the consequence of a charge created by a company without complying with the registration requirements?
- The charge is void against any person who acquires the property charged for value without knowledge of the charge.
- The charge is void against all creditors of the company.
- The charge is void against the company itself.
- The charge is void against the chargee.
The answer is (a). The consequence of a charge created by a company without complying with the registration requirements is that the charge is void against any person who acquires the property charged for value without knowledge of the charge.