Q.Write a short note on: Government Company

A government company, as defined in the Companies Act, 2013, is one in which at least 51% of the paid-up share capital is held by the Central Government and/or one or more State Governments. Examples include BHEL, SAIL and Indian Oil Corporation.

Under Section 2(45) of the Companies Act, 2013, a government company means any company in which not less than fifty-one per cent (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 a government company. Such companies are managed like other companies but are controlled by the government; examples are Bharat Heavy Electricals Ltd ( …