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CS Executive · Company Law and Practice · Charges

Zenith Metals Ltd filed particulars of a charge with a wrong property description by inadvertence, which does not prejudice creditors or shareholders. Who can direct rectification under the Companies Act, 2013?

The Central Government can direct rectification, on application by the company or any person interested, because the misstatement was inadvertent and not prejudicial to creditors or shareholders. It may do so on terms it considers just and expedient.

  1. AThe Central Government, on application by the company or any person interestedCorrect
  2. BThe Registrar alone, suo motu, without any application
  3. CThe Securities and Exchange Board of India
  4. DThe charge holder's board by resolution

Explanation

Section 87 empowers the Central Government, on application by the company or any person interested, to direct that an omission or misstatement in a filing about a charge be rectified, where it was accidental, inadvertent or for other sufficient cause, or does not prejudice creditors or shareholders. It may impose terms it considers just. The Registrar and SEBI are not given this power in that section.

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