Q.What is meant by Government Company.

A government company is a company registered under the Companies Act in which at least 51% of the paid-up share capital is held by the government (central and/or state); it combines government ownership with the flexibility of company form.

According to 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 features:

• It is registered and incorporated under the Companies Act, so it is a separate legal entity.
• The majority (at least 51%) ownership and control lies with the government, while the balance may be held by private investors or the public.
• It is managed by a Board of Directors and enjoys the operational flexibility of a company. …