Duty of a company to register charges in Nigeria

Duty of a company to register charges in Nigeria

October 31, 2019

Section 197 of the Companies and Allied Matters Act cap C20 Laws of the Federation of Nigeria 2004 (CAMA) states that every charge created by a company shall so far as any security on the company’s property or undertaking is conferred be void against the liquidator and any creditor of the company, unless prescribed particulars of the charge together with the instrument, if any, by which the charge is created or evidenced, have been delivered to or received by the commission for registration within ninety days after its creation but without prejudice to any contract or obligation for repayment of the money thereby secured , and when a charge becomes void based on this provision, the money secured shall immediately become payable.

It is thus the duty of the company securing its debt by a charge on its property to register it with CAC within 90 days of its creation and failure to register it makes the debt payable immediately. The requirements for filing of a notice of charge on a company’s property or undertaking includes the following:

 duly stamped and sealed deed with counterpart copy

 duly completed form for notice of charge

 Court order where applicable (section 205 of the CAMA for late filing of mortgage)

 Photocopy of previous registered deed in case of deed of upstamping

 Payment of fees



  1. Notice of a charge shall be filed with the Commission within 90 days of the creation of the charge.
  2. In the case of mortgage, evidence of application for Governor’s consent duly submitted to the appropriate authority must be disclosed



The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

More Articles


Connect With Us

Got any questions?

If you are having any questions, please feel free to ask.

Send us an email

Frequently Asked

  • What additional documents do I require to file my Annual Returns?
  • What’s the difference between a business name and an LLC?
    • A business name is a sole proprietorship, usually owned and managed by one individual only. Legally, the sole proprietor and his business are one. It simply means an individual trading with an alias. The sole proprietor is personally liable for all business related obligations.

    • A limited liability company on the other hand is a separate business entity from the individuals that hold its shares and act as directors. Legally, it’s a separate business entity and a person on its own who can transact business, own property separate from its owners and can sue or be sued. 

  • Can I process/register multiple products at NAFDAC at the same time?

    Yes, you can process/register multiple products at the same time

  • Is it legal to transfer the personal data you obtained legally to another person?

    No, its not legal. This is because the law prohibits anyone from transferring the data of a third party to another person without consent from the third party to do same even if the data was rightfully obtained in the first instance.

  • What is the basic criteria for registering a Design?

    The design must be new and original. This means that it must be a unique design not similar to an already existing design.

  • Is there a penalty for late renewal of registration of products with NAFDAC?

    Yes, there is a late renewal fee, which is dependent on the category of the product.

  • How many shareholders do I need to start a company?

    A minimum of two (2) shareholders is required to form a company.

  • What is a trademark?

    A trademark can be any word, sign, symbol or graphic that you apply to your company, goods or services to distinguish them from those of your competitors; for example, a brand, product or company name, or logo. The trademark serves as a badge of origin for your business and its brands and products, and can consist of words, logos, slogans, colours and shapes, or a combination of all of these.

Call Us Now on +234 901 719 0079 Whatsapp icon Chat on WhatsApp