Q.Write a short note on: Government Company

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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