Board Resolution Format for Satisfaction or Release of Charge

According to Section 82 of the Companies Act, 2013 and Rule 8 of the Companies (Registration of Charges) Rules, 2014, a company or charge holder shall give intimation of satisfaction of charges to the ROC in Form No.CHG-4 along with the fee within 300 days from the date of the payment or satisfaction in full of any registered charge.

After the repayment of loan amount by a company, the board of directors in its meeting takes note of the same and passes necessary resolutions in this regard.

Here are templates of such board resolutions for satisfaction of charges.

FORMAT #1

#. To Take Note of Satisfaction of Charge Id ______

The Managing Director informed the Board that the company had obtained a term loan of Rs. _________ from (Name of the Financial Institution), ______ Branch on (Date) at a rate of interest ___% p.a. against mortgage/hypothecation of (Details of the Property of the Company) on first pari passu charge basis. The details of the charge was filed with the ROC, _____ and charge id ______ was allotted. The charge was subsequently modified on (Date) and (Date) after partial payments towards the loan. The last installment of the said term loan has been paid in full to (Name of the Financial Institution) on (Date). The company is required to file the particulars of satisfaction of charge with the ROC, ______. The Board discussed the same.

Upon motion duly passed and seconded, it was:

“RESOLVED THAT the satisfaction of charge id number _________ of the company having date of creation ________ and date of satisfaction _______ is hereby noted.

RESOLVED FURTHER THAT (Name of the Officer), (Designation) and (Name of the Officer), (Designation) be and is hereby severally authorised to obtain no dues certificate, charge release letter, any other receipts and documents in token of full repayment of term loan of Rs. ________ to (Name of the Financial Institution), _______ Branch and to file the particulars of satisfaction of charge vide id number ______ registered with Registrar of Companies, _______.

RESOLVED FURTHER THAT (Name of the Officer), (Designation) and (Name of the Officer), (Designation) be and is hereby severally authorised to finalise and execute such deeds, documents or instruments on behalf of the company as may be required in connection with the satisfaction of the charge id ______ and to do all such acts, deeds and things as may be ancillary or incidental thereto.

RESOLVED FURTHER THAT any two directors of the company be and is hereby authorised to sign and forward a true copy of the foregoing resolution to concerned authorities as may be necessary.”

FORMAT #2

#. To Take Note of Satisfaction of Charge

"RESOLVED THAT the Board hereby take the note of charge release letter dated ______ received from _______ Bank, _______ branch for the charge id _______.

FURTHER RESOLVED THAT the bank be requested to release the title deeds mortgaged at the time of obtaining financial assistance from the bank.

FURTHER RESOLVED THAT the Managing Director and the Company Secretary of the company be and is hereby severally authorised to do all such acts, deeds and things including execution of any deeds or documents as may be required and to file charge satisfaction form with the Registrar of Companies, _______ to give effect to this resolution."

FORMAT #3

#. To Take Note of Satisfaction of Charge

"RESOLVED THAT pursuant to Section 82 of the Companies Act, 2013 (the Act) and Rule 8 of the Companies (Registration of Charges) Rules, 2014 (the Rules) and any other applicable provisions of the Act and Rules made thereunder the Company do file the Form No. CHG-4 with the ROC, ________ for satisfaction of charge id ________.

RESOLVED FURTHER THAT the release of charge letter no. _______ dated _______ received from (Name of the Financial Institution), (Address) as tabled before the meeting is hereby noted.

RESOLVED FURTHER THAT any two Directors of the company be and is hereby jointly authorised to sign and forward a true copy of the foregoing resolution to concerned authorities as and when necessary and to do all such acts, deeds, things and settle matters as may be necessary in this connection."