H M N C HERBALIFE NUTRITION PRIVATE LIMITED

In Indian corporate law, charges refer to security interests created by a company on its assets to secure loans or other financial facilities. As per Section 2(16) of the Companies Act, 2013, a charge is "an interest or lien created on the property or assets of a company or any of its undertakings or both as security." These charges must be registered with the Registrar of Companies (ROC).

Charges indicate a company's debt obligations and secured assets. No registered charges may suggest financial stability or limited access to secured credit. For investors and creditors, this information helps assess financial health and risk. Registered charges also determine priority of claims during liquidation proceedings.

Companies typically register different types of charges, including fixed charges (on specific assets like property), floating charges (on all assets or a class of assets), and assignment of receivables or intellectual property rights. Each type has different implications for the company and its creditors.

Under Section 77 of the Companies Act, 2013, companies must register charges within 30 days of creation. The Registrar may allow registration within 300 days with additional fees, and beyond that with Central Government approval. Registration is done electronically through Form CHG-1 or CHG-9 (for debentures).

Upon registration, the Registrar issues a certificate of registration under Section 77(2), which serves as conclusive evidence that the requirements for registration have been complied with. This certificate is important for both the company and the charge-holder.

Companies must register any modification to existing charges under Section 79. When a debt is fully repaid, companies must file for satisfaction of charge under Sections 82-83 within 30 days. This ensures the register accurately reflects the current encumbrances on company assets.