Summary of Charges as per company act 2013

Summary of Charges as per company act 2013 : Charge means an interest or lien created on the properly or assets of a company or any of its undertakings or both as security and includes a mortgage.

• Charge can be Fixed or Floating.
•  Charge created on a specific assets is called Fixed charge.
•  Charge created not on a specific property but on a block of property whose value keeps on fluctuating is called Floating charge. For eg – Stock in trade.
• Conversion of Floating charge into Fixed charge is called crystallization of
  charge.
• Charge can be created on –
  i) Movable Property
  ii) Immovable Property
  iii) Intellectual Property, which can be present or future property.
•  When a charge is being created in India or Outside India on the property/
  asset/ undertaking of the company whether tangible or intangible situated in
  India or Outside India then such charge is required to be registered with RoC

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Company law notes as per company act 2013

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