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Charge creation to roc

Manu (.) (83 Points)

19 November 2018

Dear all,

A Private Limited Co. had given collateral security by creating charges on its immovable property for availing Loan for its realted entity in which the former company's director is having interest. Here, the Pvt Ltd company is only giving a security to its related entity.

Whether the Pvt Ltd Co. is required to file charge creation to ROC.

Please help.

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4 Replies

Vibha Trivedi (437 Points)
Replied 20 November 2018

As charge is created on the property of the company,CHG 1 shall be filed as per my understanding.

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Manu (.) (83 Points)
Replied 20 November 2018

Dear Vibha Madam, Thank You... However there is no direct liability for the company. It is only a secuirty provided. So, is there any modification on charge register to be made by filing with ROC??

Vibha Trivedi (437 Points)
Replied 20 November 2018

There is no direct liability for the company.Important thing here is charge is created on the assets of the company.Section 77 requires a company to file CHG 1 when charge is created on the assets of the company.In Companies Act,2013 all types of charges are covered in section 77.