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CS Executive · Company Law and Practice · Charges

Meridian Textiles Ltd, a company with its registered office in Surat, has created a floating charge over its stock in favour of a bank. Where must the company keep its own register of charges, and what must be kept along with it?

The company must keep its register of charges at its registered office, including floating charges, and must also keep a copy of the instrument creating each charge at the registered office along with the register, as section 85(1) and its proviso require.

  1. AAt its registered office, together with a copy of the instrument creating the chargeCorrect
  2. BAt its registered office, but copies of instruments need be kept only with the bank
  3. CAt any office of the company chosen by the Board, together with the instrument of charge
  4. DWith the Registrar, who keeps the company's register on its behalf

Explanation

Section 85(1) requires every company to keep at its registered office a register of charges covering all charges and floating charges. The proviso requires a copy of the instrument creating the charge to be kept there along with the register. Keeping it at another office or only with the bank does not comply.

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