ICAI releases Technical Guide on Charges-Registration, Modification & Satisfaction under Companies Act 2013 & LLP Act 2008
The Debt Finance is gaining popularity with the coming times. Almost every individual, LLP, Companies and body corporates borrows money from bank, financial institutions, co-operatives etc. for meeting their day to day requirements.
Over the years the Government of India has also made stringent laws in this matter keeping in view the lender’s interest and the rate of default in repayment. The Ministry of Corporate Affairs has made it obligatory for the companies having charges to register the creation, modification and satisfaction of charges whether the same has been created in India or out of India along with the other legal and procedural formalities. Though for the LLPs it has not been mandated however as a matter of transparency, if the LLP wishes to register their charge(s) they can do so.
It was perceived that technical guidance was required in this area to equip the members, industry, banks and financial institution with the processes to be adhered to with respect to the legal formalities on Charges.
In this regard, the Institute of Chartered Accountants of India (ICAI) through its Corporate Laws & Corporate Governance Committee (CL&CGC) is bringing this “Technical Guide on Charges – Registration, Modification and Satisfaction under the Companies Act, 2013 and LLP Act, 2008” to provide detailed guidance on the procedural aspects for clear interpretation and understanding of the Act and changes brought in the Act.