Skip to content

CA Intermediate · Corporate and Other Laws · Registration of Charges

Rohan, a director of Himalaya Cement Ltd., checks the company's records and asks where the register of charges must be kept and who may inspect it. Which statement is correct under the Companies Act, 2013?

A company must keep a register of charges at its registered office, containing particulars of all charges on its property. Members and creditors may inspect it free of charge and others on payment of a fee, so it is not confidential or kept only with the Registrar.

  1. AThe company must keep a register of charges at its registered office, open to inspection by members and creditors, with others also allowed on payment of the prescribed feeCorrect
  2. BThe register is kept only with the Registrar and the company need not maintain one
  3. CThe register is confidential and open only to directors
  4. DThe register is kept at the bank's office that holds the charge

Explanation

Every company must keep at its registered office a register of charges with particulars of all charges on its property. It is open to inspection by a member or creditor without fee, and by any other person on payment of the prescribed fee. Option B is wrong because the company has its own duty alongside the Registrar's register.

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