REGISTRATION OF CHARGES
Under the Act, every company is required to keep at its registered office a register of all its fixed charges specifically affecting the property of the company and all floating charges on the undertaking or any property of the company and to enter in it a short description of the property charged, the amount of the charge and the names of the persons entitled to it.
The Act provides for the registration of the following charges (Registerable charges) of the company together with the instrument creating them within 30 days of their creation.
- A charge for the purpose of securing any issue of debentures
- A charge on uncalled share capital of the company
- A charge on any immovable property wherever situated or any interest there in
- A charge on any book debts of the company. A book debt is any debt occurring in the ordinary course of business as is usually entered in the trade books.
- A floating charge on the undertaking or any property of the company including stock in trade.
- A charge on calls made but not paid. Unless otherwise provided in the MOA or AOA a charge on unpaid capital cannot be created
- A charge on a ship or any share in ship
- A charge on the goodwill, patent or license under a patent, trademark or on a copyright