controlling interest

This query is : Resolved

Pratibha (Querist)
Follow

22 December 2008 Pls solve my query urgently.............
when a company called to have acquired the controlling interest in another co.,
I've seen Section 4 of the companies act, 1956 but still have a doubt, with regards to 51%, of what? that whether it is just 51% of paid up share capital or authorised share or subscribed share capital?
Or whether it is 51% of equity share capital
Or 51% sum of paid equity + Prefe. share capital
Or 51% of paid equity +pref.share capital+debentures?
pls reply as per the prov. of the act.

CS Vivek Hegde

CS Vivek Hegde (Expert)
Follow

23 December 2008 Prathiba

Usually controlling interest comes from Equity Shares only..So some time equity shares are called controlling shares..

It is 51% of paid up capital..bcz unless it is issued u can not hold interest in the authorised capital.

hope u r clear

Vivek