8/13/2019 STUDY-16 Search and Status Report

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SEARCH ANDSTATUS REPORTS

STUDY XVI

A charge is created when the security on the property of the companyis conferred on another person. Where in a transaction for value, bothparties evidence an intention that the property existing or future, shallbe made available as security, the charge on the property is created.

The Companies Act, 19 ! provides for a comprehensive list of chargeswhich re"uire registration and it also provides for the conse"uences ofnon#registration.

The Act envisages registration of charges with the Registrar of Companies sothat any person acquiring the property of the company has constructive notice ofthe charge prior to acquisition.Once a certificate of charge is issued by the Registrar of Companies, it isconclusive evidence that the document creating the charge is properlyregistered .

1. The managing director of Cautious Bank Ltd. invites you as a ractising Company!ecretary to e"plain him about compilation and preparation of search report beforelending funds to a private company. #"plain briefly the issues involved in this regard.$% marks&

ANS: MCA-21 enables viewing of public documents of companies for whichpayment has been made by user!orm "# !orm 1$# !orm 1% and copies of certificates of registration thereofare available for inspection at the website &efore proceeding with theinspection it would be advisable to ensure that the format in which thesearch report is re'uiredMeticulous care will have to be ta(en in noting down the followingparticulars from the )egister of Charges:$a% &ate of registration $preferably with the serial number% of the document$b% &ate and nature of the document creating the charge$c% Amount of the charge$d% 'rief particulars of the property charged$e% (ame and address of the person in whose favour the charge is created.)n respect of each of the charges created, it would be essential to identify themodifications effected from time to time by noting down carefully the followingparticulars*$a% &ate of registration of the document $preferably with the serial number%$b% (ature and date of the instrument modifying the charge$c% +ffect of odification.+ach modification should be noted in chronological order and the above particularsshould be compiled together for each charge.As and when the charge is satisfied, fool#proof identification of the exact chargewhich is satisfied is of paramount necessity. The following particulars can be notedchronologically by way of modification by the -earch eport.$a% &ate of registration $preferably with the serial number% of the document$b% &ate of satisfaction.Non-essential particulars of charges comprise of the gist of terms andconditions with regard to *a+ mode of repayment *b+ rate of interest and *c+margin, these need not be given in the Search )eport unless specifically sore'uired by the clientf the client re'uires particulars of the charges pending registration# it isadvisable to give a separate report based on the verification of theregisters and records maintained by or available with the company

8/13/2019 STUDY-16 Search and Status Report

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SEARCH ANDSTATUS REPORTS

STUDY XVI

'. !tate the procedure for vie(ing of public documents of companies on )C* portal. $+marks&

* !- )C* '1 offers the facility to vie( documents and also search and other facilities ofpublic documents. This facility is handy for users and banks and financial institutions(hile sanctioning loans.This facility enables viewing of public documents of companies for which payment has beenmade by user. The document can be viewed only within 7 days after the payment has beenconfirmed. Also, the documents are available for only 3 hours after the user has started viewingthe first document of the company.a! "ser has to access #y #CA portal and login to the #y #CA portal.

b! Clic$ on the %#y &ocuments' tab after logging into the system.

c! (ist of company names will be displayed, for which user have already paid for public viewing.)t also displaysi! &ate of request i.e. the date, when user made the request to view the company document.ii! *tatus of the request i.e. whether viewed or to view.

d! Clic$ on the view lin$ under status field.

e! The documents are grouped under five categories i.e. user has to clic$ on the desiredcategory under which the document falls.

f! )f more than one document is listed, the user can arrange them name wise or date wise.

g! +n clic$ing the document name, the document shall be displayed for viewing.

The public documents under this facility are available for vie(ing by public on payment ofre/uisite fee. ublic documents include 0ncorporation documents, charge documents,annual returns and balance sheet, change in directors and other documents.