Section 85 of the Companies Act, 2013 (“the Act”) requires every company to keep at its registered office a register of charges. The register must contain the particulars of every charge created on the company's property, the terms and conditions of the charge, the property charged, the amount secured, and the names of the charge holders.
The Maintenance
The register must be kept at the registered office, and it must be preserved for a period of eight years from the date of the satisfaction of the charge. The register may be maintained in electronic form, but it must be accessible at the registered office.
The Inspection
The register of charges is open to inspection by any member or creditor of the company without charge, and by any other person on payment of the prescribed fee. The inspection must be allowed during business hours, and the company must provide copies of the register on request.
The Penalty
The failure to maintain the register of charges, or to allow inspection, is an offence. The company and its officers are liable to penalty, and the ROC may initiate prosecution. The register is a public document, and the failure to maintain it undermines the transparency that the charge registration regime is designed to achieve.
Call to Action
Anuj Desai & Associates advises companies on the register of charges—from the maintenance and the preservation to the inspection rights and the response to a member's request. If your company's charge register is incomplete, we can help you regularise it.
📧 office@anujdesaiassociates.com
📞 9619456656
🌐 https://anujdesaiassociates.com
🔗 linkedin.com/in/ca-anuj-desai-122547230
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