Varsha (CS) (130 Points)
09 September 2011Dear Friends
Can anybody clarify me whether u/s 269 and section 383 the paid up capital includes preference share capital also?
My company is a pvt ltd which is subsidiary of public ltd. So the above section apply. But my Equity capital is 3 Crs. and Pref cap is 9 Crs. whether I need to appoint a MD and CS as if I take pref cap the it is above 5 crs?
Kindly reply urgently.
Regards
Varsha
DS Mahajani
(1)
(242 Points)
Replied 09 September 2011
The Sec 269 prescribes the word 'Paid up Share Capital' and not 'Paid up Equity Capital', therefore you will have to consider both Equity as well as Pref Share Capital in this case.
Accordingly, you will require to do necessary compliance of Sec 269 and 383 in respect of appt of MD and CS of the Pvt Ltd Co, which is a subsidiary of a Pub Ltd Co.
Regards,
DSM
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 09 September 2011
Yes, pref share capital is to be considered.
CAclubindia
