Companies Register at its Registered Office

Charges that are made for instrument creation is very important to register in the company’s register at the registered office.

Corresponding Provision of the Companies Act, 1956

The rules followed for registering the company is not enough. Even after the company registration, so many rules are expected to follow by the company.

According to Section 136

 At the registered office, the company should keep the copy of instrument creating charge. 

Section 143 of Companies Act, 1956

Company’s register of charges.

Registering the charges in a register of the company is as important as Company registration. All the companies must keep a register at the registered office. The register consists of the company’s charges. Especially they must register the charges that affect the company’s floating charges and property. The major actions like undertaking any property must register in the register.

Under these case the registration  must have done;

• A description of the charges made for the property.
• The total amount of the charge.
• The person’s name whose is charged with the property

None of the officers shall omit this in the name of ignorance. If he ignores he will be punished. The punishment will be the fine which may extend more than five thousand.

 

Right to inspect copies of the instrument creating charges and company’s register of charges

• The copies of the instrument creating charges must be kept in pursuance of section 136. The register contains the charges also kept in pursuance of section 143. So these are expected to be open during business hours. Each and every day it can be inspected and that inspection shall not be carried out lesser than two hours. This is for the inspection of the creditor or any member of the company at the registered office of the company.
• The register of charges is kept for the pursuance of section 143. During the business time, the register shall be open. They should abide by the rules and regulations that said before. Any other person can be called for the inspection regarding the payment of a fee.
• The punishment will be given in form of the fine if an officer refused to accept the inspection. From the first day of refusal, two hundred rupees adds to five thousand rupees. Addition of two hundred rupees should be multiplied by the number of days they refused for inspection.
• The Central Government may order the company at any time for immediate inspection.

 

 

Analysis of Relevant Provisions of Companies Act, 1956 in Relation to Companies Act 2013

Section 136 of Companies Act, 1956

This act expects the company to register with the registered office of the company. They have to register the instrument creating copies. It also has an exceptional case. If the company has the series of uniform debentures. If this is the case then one copy of one debenture is more sufficient.

This act has the close similarity to the requirements of section 85 proviso of 2013 Act. This act requires the maintenance of instrument creating a charge in the registered office.

Section 143 of Companies Act, 1956

The register containing charges shall be kept at the register office of the company. The original name of the parties is not enough as an information along with that transferee’s information is also required in the register. It is not needed to post the information up to date rather they must keep the register.

Section 144 of the Companies Act, 1956

The copies of the instrument creating charges are open for inspection by the members and creditors, but they are not allowed to inspect by others. Any other instruction that the company makes regarding inspection it is all given in the general meeting. Above all, every day at least the company should provide two hours time for the inspection

Companies Act 2013: Section 85       

This act is in effect from 1st April 2014. This section corresponds to s. 136, 143 and 144 of 1956 Act. Each and every company should keep the register of charges at its registered office. Copies of charges creating sheets are also is required to keep along with the register of charges. Any member of the creditor can open the register for inspection. The above to documents are expected to keep in prescribed form and manner.

Inspection of register of charges

The register of charges and instrument of charges are expected to keep open during the business hours.

1. Without any payment of the fee, it can be opened by any member or the creditor.
2. By paying the fee it can be opened by any other person.

The inspection made on charges can be subjected to the reasonable restrictions.

Relevant rules under companies Act, 2013

• The companies rule 2014 that are relevant to section 85 of 2013
• In Form No. CHG. 7 the company should keep the register of charges in the registered office. All the charges must be registered in the register.
• The entries shall be made after the creation, modification, and correction.
• The entries made in the register must be authenticated by the authorized person from the Board, secretary or director.
• The register of charges is preserved permanently. The instrument creating charge is preserved for eight years from the date of satisfaction.

Register open for inspection

• It can be opened by member or creditor of the
• It can also be opened by any other person by paying the fee.

Companies Act, 1956: Section 142

According to the section 142 of Companies Act,1956 it was stated that penalty is a default for the filing charge or a satisfaction charge under various sections within the prescribed time or the extended time. The penalty was hiked from rupees five hundred to five thousand and thousand to ten thousand.

Companies Act, 2013: Section 86 

Section 86 of the 2013 Act has come to an effect from 12th September  2013. Section 86 of the 2013 Act corresponds to section 142 of 1956 Act. The penalty was given in s. 86 of 2013 it is default in filing charge or satisfaction of charge under various sections. By comparing it to the provisions under 1956 act the penalty has hiked and it shall not be less than one lakh rupees.  It may extend to ten lakh rupees. Either the officer imprisoned for six months or he must pay for it as fine. The fine amount may not be less than twenty-five thousand rupees.

These are the rules and regulation followed for Company ‘s register.