CHARGE CREATION AND SATISFACTION

A charge is a security given for securing loans or debentures. The security may be provided either by way of mortgage, hypothecation or pledge.

LEGALDUX Corporate Services professionals extend full range of legal advice and support from registration to satisfaction of charges.

We also help in filing necessary forms with Registrar of Companies for such registration, modification and satisfaction of charges.

Registration of Charges- Section 77

Company shall file, the particulars of every charge created, with the ROC in Form CHG-1, together with the instrument, if any, creating, evidencing, etc. the charge.

Modification of Charges

Modification of charge is a stage subsequent to the creation and registration of charge.

The underlying object behind the concept of modification of charge is to keep the particulars filed with the concerned Registrar of Companies in connection with the registration of charge up to date.

Satisfaction of Charge- Section 82

A company is required to file particulars for satisfaction of charge with ROC and shall update the Registrar on payments made in full to charge holders through filing of necessary forms.

List of Forms

1. CHG-1

Application for registration of creation, modification of charge (other than those related to debentures)

2. CHG-2

Certificate of registration of charge

3. CHG-3

Certificate of registration of modification of charge

4. CHG-4

Particulars of satisfaction of charge thereof

5. CHG-5

Memorandum of Satisfaction of charge

6. CHG-6

Notice of appointment or cessation of receiver or manager

7. CHG-7

Register of charges

8. CHG-8

Application for condonation of delay shall be filed with the Central Government

9. CHG-9

Application for registration of creation or modification of charge for debentures or rectification of particulars filed in respect of creation or modification of charge for debentures