Question

What is meant by a Government Company?

Answer 1

A public enterprise incorporated under the Indian Companies Act, 1956 is called a Government company. These companies are owned and managed by the central or the state government.

Section 617 of the Companies Act, 1956 defines “Government Companies” as 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. A subsidiary of a Government company shall also be treated as a Government company.