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Section 2(16) of the Companies Act 2013 defines charge as “an interest or lien created on the property or assets of a company or any of its undertaking or both as security and includes a mortgage.
A charge is created when a company puts forward its assets as security on any amounts loaned to it. Further modification of charge is when the terms of the charge are changed.
1. After passing a Special Resolution, the Company needs to file a form MGT-14 of the Companies (Management and Administration) Rules 2014 to be filed with the registrar.
2. Particulars of charge to be filed with the registrar within 30 days of creating in the Form No. CHG-l (for other than debentures) or Form No. CHG-9 ( for debentures)
3. The following documents to be attached with e-form No. CHG-1/ CHG-9 –
• A certified true copy of evidencing any creation or modification of charge.
• In cases where there are more than one charge holder, particulars of other charge holders.
• The instrument evidencing creation or modification of charge in case of acquisition of property which is already subject to charge together with the instrument evidencing such acquisition.
4. Secrecy Agreement (SA)
Filing of Form
This form is filed within thirty days of satisfaction of charge. Every company shall intimate the RoC of the payment or satisfaction (in full) of any charge relating to the company within 30 days from the date of such payment or satisfaction. Indian companies will file eForm CHG-4 with their concerned RoC and the foreign companies will file eForm CHG-4 with the Delhi RoC.
Mandatory attachments with E-form CHG-4