Q.What is meant by Government Company ?

A Government Company is one in which at least 51% of the paid-up share capital is held by the Central and/or State Government(s), under Section 2(45) of the Companies Act, 2013.

Among the forms of government organisation in the TN HSC Class-11 Commerce syllabus, a Government Company is a public enterprise set up under the ordinary company law.

Meaning:

• Under Section 2(45) of the Companies Act, 2013, a Government Company means a company in which not less than 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 treated as a Government Company.

Main points:

• It is registered under the Companies Act like any other company and has a separate legal entity.
• It is managed by a Board of Directors nominated mainly by the government. …