What is the main purpose of registering a charge created by a company?
Correct answer: A. To give public notice of security over company assets
- A. To give public notice of security over company assets
- B. To convert all company shares into preference shares
- C. To cancel the company’s outstanding loans immediately
- D. To transfer management powers from directors to creditors
Explanation
Registration of a charge places information about security over company property on the public record and helps establish priority against competing claims. It does not cancel the debt or automatically transfer company management to the creditor.
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About Company Law Basics
Company law covers incorporation, separate legal personality, limited liability, shares, the memorandum and articles of association, and the powers and duties of directors. It also includes shareholder meetings, resolutions, company records, audit, winding up and the differences between a registered company, partnership and sole proprietorship.
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