Section 297

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vishwas gajanan chandhaikar (Querist)
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13 March 2012 Dear All,

We have a Public Ltd. Company whose share holding pattern is as under

Equity Capital 95 lacs
Preferance Share Capital 91 lacs
Total 1.86 Lacs

Now my question is Section 297 says if the paid up capital is more than 1 crore then if we enter in to contracts where directors are interested we have to take permission from Central Government.

But, Does Paid Up Capital includes Preference Share Capital or not?

Whether yes or not and what is the logic?

Thanks in advance

Vishwas

Ajay Mishra

Ajay Mishra (Expert)
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13 March 2012 Hi

Paid up capital includes preference shares also. For more updates check your latest Annual Return. Also check capital clause of MOA.

For more details check master data of company on mca portal.

Regards

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vishwas gajanan chandhaikar

vishwas gajanan chandhaikar (Querist)
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14 March 2012 Dear Sir,

Thanks for your quick reply.

My question is
For Calculating 1 Crore Paid Up Capital limit regarding Section 297
Shall we include Preferance Share Capital in Paid Up Capital.

Thanks
Vishwas

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Ajay Mishra

Ajay Mishra (Expert)
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14 March 2012 Hi

Yes, as earlier said paid up capital includes preference shares capitals.

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