Unit – 18 : Registration And Satisfaction Of Charges

Unit – 18 : Registration And Satisfaction Of Charges

Charge is used to mean any form of security for debt.

Types of Charges

1. Fixed Charge – is also called Specific Charge. It extends over a specific property.
2. Floating Charge – means a charge
   1. that floats over the present and future property of the company
   2. that does not restrict the company from assigning the property subject to third persons, whether by way of sale or security.
   3. that on happening of an event or contingency crystallises as a fixed charge.

Procedure for Registration Of Charge Effect of Non-Registration Of Charges

Section 125 of the Companies Act provides that the charge created by the company over the properties, if not registered would not be valid against the liquidator and any creditor of the company.