CS Executive · Company Law and Practice · Charges

Zenith Pharma Ltd maintains a register of charges at its registered office but keeps the copies of the instruments creating the charges only at its corporate office in another city. Which statement is correct under Section 85?

The practice is non-compliant. Section 85 requires the company to keep, at its registered office, the register of charges and also a copy of the instrument creating each charge along with it. Keeping instruments only at another office does not satisfy the requirement.

1. AThe practice is compliant because only the register must be at the registered office
2. BThe practice is non-compliant because a copy of each instrument creating the charge must be kept at the registered office with the registerCorrect
3. CThe practice is compliant if the Registrar is informed of the location
4. DThe practice is non-compliant only if a creditor complains