COMPANIES ACT - 1963 (ACT 179)

    Section - 107 - Registration of Particulars of Charges Created by Companies

    (1) Every charge, other than those specified in subsection (3) of this section, created by a company after the commencement of this Code shall be void so far as any security on the company's property, which expression includes its undertaking and the unpaid liability on its shares, is thereby conferred, unless the particulars hereinafter prescribed, together with the original or a certified copy of the instrument, if any, by which the charge is created or evidenced, are delivered in the prescribed form to the Registrar for registration within twenty-eight days after the date of its creation.

    (2) This section shall not prejudice any contract or obligation for repayment of the money thereby secured and when a charge becomes void under this section the money secured thereby shall immediately become payable notwithstanding any provision to the contrary in any contract.

    (3) This section shall not apply to any pledge of, or possessory lien on, goods, or to any charge, by way of pledge, deposit, letter of hypothecation or trust receipt, of bills of lading, dock warrants or other documents of title to goods, or of bills of exchange, promissory notes or other negotiable securities for money.

    (4) Subject to subsections (5) and (6) of this section the particulars requiring delivery for registration under this section shall be,

    (a) the date of creation of the charge;

    (b) the nature of the charge;

    (c) the amount secured by the charge, or the maximum sum deemed to be secured thereby in accordance with the provisions of section 108 of this Code;

    (d) short particulars of the property charged;

    (e) the persons entitled to the charge; and

    (f) in the case of a floating charge, the nature of any restriction on the power of the company to grant further charges ranking in priority to, or pari passu with, the charge thereby created.

    (5) Where a series of debentures containing, or giving by reference to any other instrument, any charge to the benefit of which the debenture holders are entitled pari passu, is created by the company, it shall, for the purposes of this section, be sufficient if they are delivered to the Registrar within twenty-eight days after the execution of the document containing the charge or, if there is no such document, after the execution of any debentures of the series, the following particulars, namely,

    (a) the dates of the resolutions authorising the issue of the series and the date of the covering deed, if any, by which the security is created or defined;

    (b) the total amount secured by the whole series;

    (c) the names of the trustees, if any; and

    (d) the particulars specified in paragraphs (b), (d), and (f) of subsection (4) of this section,

    together with the original or a certified copy of the deed creating the charge or, if there is no such deed, of the debentures of the series.

    (6) For the purposes of subsections (1) and (5) of this section a certified copy shall be a copy which has endorsed thereon a certificate to the effect that it is a true and complete copy of the original, under the seal of the company or under the hand of some person interested therein otherwise than on behalf of the company.

    (7) Where the original is in any other language the copy shall also contain a translation acceptable to the Registrar similarly certified to the effect that it is an accurate translation of the original.

    (8) Nothing in this section contained shall affect the provisions of any other enactment relating to the registration of charges.