Q.Under Section 2(45) of the Companies Act, 2013, a company is classified as a Government Company if:
(A) It is registered under the Companies Act by any government department
(B) Not less than 51% of its paid-up share capital is held by the Central Government, a State Government, or a combination of both
(C) It supplies goods exclusively to government departments
(D) It was originally a Chartered Company later taken over by the government

Section 2(45) fixes a precise numerical test — 51% or more government-held paid-up share capital — not merely that the government is a customer or founder.

Section 2(45) defines a Government Company by a precise ownership threshold: not less than 51% of its paid-up share capital held by the Central Government, or by any State Government(s), or partly by the Central Government and partly by one or more State Governments — and includes a company that is a subsidiary of such a government company.

Option-by-option analysis:

• (A) Incorrect — being registered by a government department, without meeting the 51% shareholding test, does not by itself make a company a Government Company.
• (B) Correct — this is exactly the Section 2(45) test. …