Companies Act 2014 section 416

Entries of satisfaction and release of property from charge

Section 416 deals with how the Registrar updates the register when a debt secured by a charge has been paid off, or when property is released from a charge, and sets out the consequences of making false statements in connection with such updates.

• The Registrar may record on the register that a charge has been fully or partly satisfied, or that property has been released from or ceased to be subject to a charge, provided satisfactory evidence is supplied.
• A signed statement in the prescribed form by a director and secretary, or by two directors, confirming the satisfaction or release may be accepted by the Registrar as sufficient evidence.
• Knowingly signing a false statement of satisfaction or release is a category 2 criminal offence.
• Where a person signs such a statement without honestly believing it to be true, and this contributes to the company's insolvency or harms creditors, the court may declare that person personally liable for all or part of the company's debts.