Q.Write a short note on: Government Company

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 …