A company upon payment or satisfaction in full of any charge registered under Chapter VI of companies Act 2013 shall give intimation of satisfaction to the Registrar of Companies. The procedure for applying for the certificate of satisfaction of charges registered under companies act are as under.
The company shall approach lender bank/financial institution to issue a ‘letter of satisfaction’ stating that no dues exist from the company towards credit facilities provided by them. After getting the letter of satisfaction from the bank/financial institution, the company has to conduct a board meeting. In the meeting, the board has to pass a resolution authorizing a Director or Company Secretary or any other authorized person to file the satisfaction of charge (CHG-4) with ROC. The entries of satisfaction of charges are to be made in the register of charge maintained by the company in form CHG-7 format which shall be authenticated by a Director or Company Secretary or any other authorized person. The company shall give intimation to ROC within a period of thirty days from the date of the satisfaction of charge. The resolution passed copy and the letter of satisfaction issued by the bank/financial institution to be attached to CHG-4 along with the fee for registration of satisfaction charge. The memorandum of satisfaction (certificate of satisfaction) of specified charge will be issued by ROC in form No.CHG-5.
Mode of charge registration under companies act
Effects of non-registration of charge
Effects of charge registration under companies act
Difference between first charge and second charge
Meaning of pari passu Charge
Meaning of fixed charge, floating charge, and crystallization of charge