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appointment of company auditor

Dheerej Kumar (None) (121 Points)

12 January 2010

u/s 224A if 25% or more of the subscribed share capital is held by Govt. and certain bodies the appointment of company auditor is to be made by passing a SR by members. My question is that what is this subscribed share capital? Is this only equity capital or prefernce share capital is also considered ti compute such proportion of 25%. please reply and elaborate, Thanks in advance.

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8 Replies

Amir (Learner) (4016 Points)
Replied 12 January 2010

Dear Dheerej,

1) First Sharecapital in this case includes both Equity as well as Prefrence...

2) Let's understand Subscribed Share Capital with an example

- Company issues 100 shares @ Rs 10 each - This Rs.1,000 is known as Isuued Share Capital,

- Public Applied/Subscribed for 90 shares @ 1 0 each- Rs. 900 is known as subscribed share capital..

- Company has called Rs. 8 out of FACE VALUE of Rs. 10 - this Rs. 800 is known as called up share capital

- people has paid Rs. 7 out of Rs. - Rs. 700 will be paid up..

CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 12 January 2010

Dheeraj..

Amir has explained nicely..

Adarsh

Dheerej Kumar (None) (121 Points)
Replied 12 January 2010

Dear Amir and Adarsh thanks for ur concern, but Amir I've not asked about the classification of share capital. I vry well know the meaaning of subscribed capital , plz answer in reference to Sec 224 A that whether sumscribed share capital as mentioned in Sec. 224A includes preference share or equity shares only.As preference shares do not have voting rights.