As per section 224A special resolution for appointment of auditors is required for company in which not less than twenty-five per cent of the subscribed share capital is held, whether singly or in any combination, by—
(a) a public financial institution or a Government company or Central Government or any State Government, or
(b) any financial or other institution established by any Provincial or State Act in which a State Government holds not less than fifty-one per cent of the subscribed share capital, or
(c) a nationalised bank or an insurance company carrying on general insurance business,
My question here is that we are a company in which Government holds 50% capital . We also have a 100% wholly owned subsidiary. Does this subsidiary also requires to pass a special resolution for appointment of statutory auditor as indirectly it also has share of Government of 50%. Please clarify its urgent
CAclubindia
