Q.Explain the classification of companies on the basis of liability.

A government company, as defined in the Companies Act, 2013, is one in which at least 51% of the paid-up share capital is held by the Central Government and/or one or more State Governments. Examples include BHEL, SAIL and Indian Oil Corporation.

Under Section 2(45) of the Companies Act, 2013, a government company means any company in which not less than fifty-one per cent (51%) of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments. A subsidiary of a government company is also a government company. Such companies are managed like other companies but are controlled by the government; examples are Bharat Heavy Electricals Ltd ( …

Under the Companies Act, 2013, a government company is one in which not less than 51% of the paid-up share capital is held by the Central Government and/or State Government(s). It is owned and controlled by the government but functions as a separate corporate body.

Government Company

According to the Companies Act, 2013, a government company means any company in which not less than 51% of the paid-up share capital is held by —

• the Central Government, or
• any State Government or Governments, or
• partly by the Central Government and partly by one or more State Governments,

and includes a company which is a subsidiary of such a government company. Though owned by the government, it is registered under the Companies Act and has a separate legal existence, its own management and the capacity to sue and be sued in its own name. Examples: Bharat Heavy Electricals Ltd (BHEL), Steel Authority of India Ltd (SAIL) and Oil and Natural Gas Corporation (ONGC).

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A government company is a company in which at least 51% of the paid-up share capital is held by the Central and/or State Government(s); it is managed like a company but is owned and controlled by the government.

According to the Companies Act, a government company means a company in which not less than 51% of the paid-up share capital is held by the Central Government, by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments. A subsidiary of a government company is also treated as a government company. Such companies combine the operational flexibility of a company with government ownership and control, and are used to run public enterprises. Examples include Bharat Heavy Electricals Ltd (BHEL), Steel Authority of India Ltd (SAIL) and State Road Transport Corporations. Kinds of companies …