When a company borrows loan by mortgaging the assets then it is called a charge on the assets of the company.
Every charge so created need to be registered with the registrar of the companies office by filing Form CHG-1 within 30 days of the date of creation of charge. This intimation is necessary for terms of section 77 of the Act. Similarly, the company is also required to intimate the ROC upon satisfaction of the charge once it is paid in full by the company. Satisfaction of Charge and Filing of Form CHG-4 by a Company.
The satisfaction of charge needs to be intimated to the ROC within 30 days of full satisfaction of charge. The filing of intimation is done in Form Number CHG-4 with ordinary filing fee based on the authorised capital of the company.
The form CHG-4 Shall be prepared and signed by anyone authorised director then it needs to be further digitally signed by the charge holder bank or FI.
For the defaults on non-filing of the intimation of the satisfaction of charge up to 300 days is a punishable offense under section 86 of The Companies Act, 2013. Both the company as well as every officer of the company is liable as under
|Punishment for Company||Punishment for Officers of the Company|
|Punishment for Company: Fine shall not be less than Rs. 1,00,000 but may extend to Rs. 10,00,000/-.||Punishment for Officers of the Company: Every officer of the company shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than Rs. 25,000 and may extend to Rs. 1,00,000/- or both|