hello pls solve the query
30% of subscribed capital of M/s A Ltd. Was Held by financial & Govt. Institution. on the date of they held only 20% of subscribed capital. Director has passed ordinary resouition on the ground that they held only 20% of subscribed capital.
is director Suggestion is Right or Wrong?
And Give Reason
if the subscribed capital as on AGM date is less than 25% than aapointment of auditor can be made by ordinary resolution.
As per sec 224A,a Special Resolution is required to appoint an auditor,if 25% of subscribed capital is held by:a)public financial institutuion,or a govt co or CG or SG:b)financial or other institution established by Provincial or State Act,in which not less than 51% is held by state Govt:c)a nationalised bank or insurance co carrying on General ins busi:d)or any combination of above.
Further if subscribed capital is held singly or jointly,the proportion of 25% of subscribed capital will be determined as on the date of closure of Register of Members before AGM.
In case of A Ltd,if the Subscribed Cap held by finan inst and Govt is less than 20% as on the date of closure of Register of Members,the company in AnnualGeneral meeting can pass Ordinary Resolution
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