{"id":5526,"date":"2020-03-28T10:23:37","date_gmt":"2020-03-28T04:53:37","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=5526"},"modified":"2022-09-10T14:15:48","modified_gmt":"2022-09-10T08:45:48","slug":"company-to-report-satisfaction-of-charge","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/company-to-report-satisfaction-of-charge\/","title":{"rendered":"What Exactly \u201cCompany to Report Satisfaction of Charge\u201d Implies?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Companies Act, 2013 represents a Charge as an interest or claim formed on the assets or resources of a Corporation or any of its project as security and includes a mortgage U\/s 2(16). In the earlier Act of 1956, the word \u201cMortgage\u201d was not included. Section 124 to section 145, 1956 confronted the charges. Under the <strong>Companies Act, 2013<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/ebooks.html\"><strong>[1]<\/strong><\/a><\/sup><strong> <\/strong>, section 77 deal with the same thing. <\/p>\n\n\n\n<p>The company may acquire wealth by giving security of its assets and may create a claim on the properties of any <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>registered company<\/strong><\/a>. The company may also allot Debentures to boost capitals which may carry a right\/ interest in the Assets\/Properties of the Company. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/company-to-report-satisfaction-of-charge\/#What_is_the_Need_for_Creating_a_Charge\" >What is the Need for Creating a Charge?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/company-to-report-satisfaction-of-charge\/#Duty_to_Register_Charge\" >Duty to Register Charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/company-to-report-satisfaction-of-charge\/#Registration_or_Modification_of_Charge\" >Registration or Modification of Charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/company-to-report-satisfaction-of-charge\/#Satisfaction_of_Charge\" >Satisfaction of Charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/company-to-report-satisfaction-of-charge\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Need_for_Creating_a_Charge\"><\/span>What is the Need for Creating a Charge?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Almost all the companies depend upon share and borrowed capital\nfor financing their projects. Borrowed money may consist of capitals fostered\nby issuing debentures or by acquiring financial assistance from banks.<\/p>\n\n\n\n<p>The financial institutions or banks do not lend funds easily\nunless they are sure that their investment is safe.<\/p>\n\n\n\n<p>To ensure security of their loans, they resort to creating right\nin the assets of the borrowing corporations, known as a charge on assets. This\nis achieved by executing loan agreements, mortgage deeds and other similar\ndocuments. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Duty_to_Register_Charge\"><\/span>Duty to Register Charge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A business creating a charge shall register the facts of the\nsaid charge with the RoC within a time frame of 30 days. <\/p>\n\n\n\n<p><strong><em>This charge could be:<\/em><\/strong><\/p>\n\n\n\n<ol><li>On its assets or property<\/li><li>Any of its projects<\/li><li>Whether tangible or intangible<\/li><\/ol>\n\n\n\n<ul><li> Situated in or outside of the country.&nbsp; <\/li><li> Signed by either the charge-holder or company. <\/li><li>Together with the instruments forming the charge. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registration_or_Modification_of_Charge\"><\/span>Registration or Modification of Charge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For registration of particulars of the charge duly approved by\nthe corporation and the charge holder filed with the Registrar within a period\nof 30 days of the date of modification or creation of charge along with the\nfee.<\/p>\n\n\n\n<p>The supplementary fee shall be levied, if the specifications of\na charge are not registered within the period above, but filed within 300 days\nof the date of such modification or creation. <\/p>\n\n\n\n<p>A copy of every instrument evidencing any modification of charge\nrequired to be filed with the Registrar shall be verified as follows-<\/p>\n\n\n\n<ul><li>where the instrument relates\nsingly to the property situated outside India, the copy shall be confirmed by a\ncertificate issued either by the company or under the hand of any director of\nthe corporation or an authorized officer. <\/li><li>Where the instrument relates,\nwholly or partly, to the property situated in India, the copy shall be\nconfirmed by a certificate assigned under the company secretary or an\nauthorized officer of the charge holder. <\/li><li>Where a charge is enrolled with the\nRegistrar, the Registrar shall assign a certificate of registration of charge\nin Form No.CHG-2. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Satisfaction_of_Charge\"><\/span>Satisfaction of Charge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A corporation shall <strong>within\n30 days from the date of the payment<\/strong>, give the implication of the same to\nthe Registrar in <strong>Form No. CHG-4<\/strong> with\nthe fee included.<\/p>\n\n\n\n<p>Where the Registrar accesses a notice of satisfaction of charge under section 82 or 83, he shall issue a <strong><em>certificate of registration of <\/em><\/strong><em><strong>satisfaction of charge<\/strong><\/em><strong><em> in Form No. CHG-5<\/em><\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Let wrap up the things with a quick summary-  satisfaction of charge is formed as security for a loan or as security for some other purpose. If the amount of loan is repaid, there remains no necessity of the charge. This is called satisfaction of charge. Hopefully, this blog has briefed you everything regarding satisfaction of charge. Fore more &#8220;Company to Report Satisfaction of Charge&#8221; related details, contact&nbsp;<a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a>, our experts will assist you.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/corporate-social-responsibility\/\">\nWhat is Corporate Social Responsibility? \u2013 An Overview\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Companies Act, 2013 represents a Charge as an interest or claim formed on the assets or resources of a Corporation or any of its project as security and includes a mortgage U\/s 2(16). In the earlier Act of 1956, the word \u201cMortgage\u201d was not included. Section 124 to section 145, 1956 confronted the charges. [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":5531,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120,340],"tags":[431],"acf":{"service_id":"321"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":5849,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5526"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=5526"}],"version-history":[{"count":19,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5526\/revisions"}],"predecessor-version":[{"id":48587,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5526\/revisions\/48587"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/5531"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=5526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=5526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=5526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}