Question

What does a "Government company" mean as per the Companies Act?

Q: Answer-What does a 'Government company' mean as per the Companies Act?

Section 245 Government company Government company means any company in which not less than fifty-one per cent 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, and includes a company which is a subsidiary company of such a Government company.

A A company where less than 50% of the paid-up share capital is held by the Central Government or any State Government

B A company where 51% or more of the paid-up share capital is held by the Central Government, any State Government, or both, and includes its subsidiaries

C A company where 49% of the paid-up share capital is held by the Central Government or any State Government

D A company where the paid-up share capital is equally divided between the Central Government and the State Governments

E A company where the majority of shares are held by private individuals

Practice Next