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CA Intermediate · Corporate and Other Laws · Registration of Charges

Apex Foods Ltd. maintains a register of charges at its registered office. Mr. Rao, a member, asks to inspect it, and a creditor, Ms. Iyer, also asks. Which statement is correct under the Companies Act, 2013?

The register of charges kept at the registered office can be inspected free by members and creditors, and by any other person on paying the prescribed fee. It is not restricted to directors, the Registrar or debenture holders, so Mr. Rao and Ms. Iyer can both inspect it without charge.

  1. AOnly directors may inspect the register of charges
  2. BThe register of charges is open to inspection by members and creditors without any fee, and by any other person on payment of the prescribed feeCorrect
  3. CThe register is open to inspection only by the Registrar
  4. DInspection is allowed only to debenture holders on payment of a fee

Explanation

The company must keep a register of charges at its registered office. It is open to inspection by a member or creditor without a fee, and by any other person on payment of the prescribed fee. This makes options A, C and D incorrect.

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