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CS Executive · Company Law and Practice · Charges

Under the Companies Act, 2013, which statement correctly describes the company's own register of charges kept at its registered office?

The company must keep at its registered office a register covering all charges and floating charges on its property, assets or undertakings, together with a copy of the charge instrument. Members and creditors may inspect it free of fees, while other persons pay a prescribed fee.

  1. AIt must include all charges and floating charges affecting any property or assets or undertakings, with a copy of the charge instrument kept along with itCorrect
  2. BIt need include only fixed charges, since floating charges are recorded with the Registrar
  3. CIt is open to inspection only by the Registrar
  4. DIt is open to members and creditors on payment of a prescribed fee

Explanation

Section 85(1) requires the register to include all charges and floating charges affecting property, assets or undertakings, with a copy of the instrument kept alongside. Under section 85(2), members and creditors may inspect it without any fee, while others pay the prescribed fee.

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