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CA Intermediate · Corporate and Other Laws · Registration of Charges

Vikram Cements Ltd. has a registered charge in favour of a bank. A question arises as to the register maintained by the company itself. Which of the following is correct under the Companies Act, 2013?

Every company must keep at its registered office a register of charges recording particulars of all charges on its property and floating charges on its undertaking, with entries for each. This duty exists separately from the Registrar's register and has no minimum amount threshold.

  1. AThe company need not maintain any register of charges since the Registrar maintains one
  2. BThe company must keep at its registered office a register of charges containing particulars of all charges on its property, with entries in respect of each chargeCorrect
  3. CThe register of charges is kept only by the charge holder
  4. DThe register need only record charges above Rs. 10 lakh

Explanation

Section 85 requires every company to keep at its registered office a register of charges with particulars of all charges on its property and floating charges on its undertaking, with entries for each charge. The Registrar's register does not replace this duty. Option C wrongly shifts the duty. Option D invents a threshold.

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