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CS Executive · Company Law and Practice · Charges

Orchid Foods Ltd files intimation of satisfaction of a charge. The form is in the specified form but is not signed by the charge holder. What must the Registrar do under section 82 before ordering a memorandum of satisfaction?

The Registrar must send a notice to the charge holder asking to show cause, within a time not exceeding fourteen days, why satisfaction should not be recorded. The notice is skipped only when the intimation is in the specified form and signed by the charge holder.

  1. AEnter the memorandum immediately because the company has filed it
  2. BSend notice to the charge holder to show cause within a time not exceeding fourteen daysCorrect
  3. CSend notice to the charge holder to show cause within a time not exceeding thirty days
  4. DRefer the matter to the Central Government for approval

Explanation

Section 82(2) requires the Registrar to send notice to the charge holder calling for cause within a time not exceeding fourteen days. Notice is dispensed with only if the intimation is in the specified form and signed by the charge holder, which is not the case here. If no cause is shown, the memorandum is entered.

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