Appointment of Auditor

I think special resolution needed wait for experts like ankur garg to comment on this

In terms of section 224A, a company in which not less than 25% of the subscribed capital is held by :

1. a public financial institution or a government company or the Central Government, or any State Government, or

2. any financial or other institution established by any Provincial or State Act in which a State Government, holds not less than 51% of the subscribed share capital,

3. a nationalised bank or an insurance company carrying on general insurance business; or

4. any combination of the above categories

shall appoint or re-appoint an auditor in the annual general meeting only by passing a special resolution.

Refering to the above provision, it could be concluded that, since the share capital is held by LIC, an institution created by statute (Point no 2) and a nationalised bank (point no 3) is greater than 25%, the appointment of auditor requires a special resolution.

Regards

M R M

if lic is a public fin institution then YES

Dear Sharad Saini

LIC is a statutory authority created by the LIC Act, 1956. .

Hence point 2 in my post will be applicable for LIC

Regards

M R M

Special resolution as per me as well.

Special resolution required if feel

@ himanshu : MRM is correct in his views..

@ sharad : you surprise me

deepesh 

i was not sure about share holding pattern of LIC.... i still dont know it if u can tell me then i will be thankful to u....

GOI holds 100% of LIC

GOI holds 100% in LIC ^_^

Yes the auditors ought to be appointed by passing a special resolution since more than 25% of the subscribed share capital is held by a nationalised bank and an insurance co