Skip to content

CS Executive · Company Law and Practice · Charges

Kaveri Textiles Ltd keeps its register of charges at its registered office in Coimbatore. Mr. Arun, a member of the company, visits during business hours and asks to inspect the register of charges. The articles impose no restrictions. Under the Companies Act, 2013, what is the position regarding fees?

A member can inspect the company's register of charges during business hours without paying any fee. The Act gives members and creditors free inspection, while other persons pay the prescribed fee. No shareholding threshold or Registrar permission is needed.

  1. AHe may inspect without paying any feeCorrect
  2. BHe must pay the prescribed fee because the register is a statutory record
  3. CHe may inspect only after obtaining written permission from the Registrar
  4. DHe may inspect only if he holds at least 10% of the paid-up capital

Explanation

Section 85(2) allows any member or creditor to inspect the company's register of charges and instruments of charges during business hours without any fee. Option B is wrong because the fee applies only to persons other than members or creditors.

Did you get it right without looking?

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

Practise ChargesFree diagnostic mock

More Charges questions