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Section 224A
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 preference share capital is also considered to compute such proportion of 25%. please reply and elaborate, Thanks in advance.
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UR QUER HAS BEEN ANSWERED IN ANOTHER FORUM...
Here subscribed share capital = Equity Share Capital+ preference Share capital for computing the 25% of the share capital limit.
Yes,
As per section 224-A(1), the Preference share capital also be taken into consider while computing the 25% of subscribed capital for the passing of special resolution in respect of appointment of Auditor.
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