Skip to content

CA Intermediate · Corporate and Other Laws · Registration of Charges

Himalaya Foods Ltd. is asked about the maintenance of records on charges. Which statement correctly describes the company's obligation regarding its own register of charges?

A company must maintain at its registered office a register of charges recording all charges on its property and any floating charges, with the amount secured and the persons entitled. This duty applies whether or not the charges were registered with the Registrar.

  1. AThe company need not keep a register of charges if all charges are registered with the Registrar
  2. BThe company must keep at its registered office a register of charges with particulars of all charges on its property, whether or not registered with the RegistrarCorrect
  3. CThe company must keep the register only for floating charges
  4. DThe company must keep the register only at the office of the Registrar

Explanation

A company must keep a register of charges at its registered office, recording particulars of all charges on its property and any floating charge on its undertaking or property, including the amount secured and the holder. This is required regardless of whether the charge is registered with the Registrar, so the first option is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Registration of Charges shows your real accuracy, how long you take and where you lose marks.

Practise Registration of ChargesFree diagnostic mock

More Registration of Charges questions