Under section 383A of Companies Act, it has defined that company is required to appoint a Company Secretary if the Company has a " PAID UP SHARE CAPITAL OF RS. 5 CRORE OR MORE ".
However, my question is that, is this requirement of Share Capital only includes Equity Share Capital, or E.S.C. and Preference Share Capital, both?
Both.Apply rule of literal interpretation
so in that case, company is required to appoint CS, suppose, in case, if their ESC is Rs.1 Lakh and their PSC is Rs.10 Crore.??
The answer will still remain the same.
The Logic of this sec. was only to check compliance by the company, hence it requires paid up capital( Equity+Pref.).Had the sec. used Paid up Equity, then Company could avoid this by issuing less number of Equity shares and More Pref. shartes, Which is mischief in Law.That's why, the Sec. used the Word piad up capital only
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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