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Question
ABC Ltd. is a company in India. The company issues shares for ₹ 100,000 out of which shares amounting to ₹ 51,000 were held by the Maharashtra State Government, ₹ 49,000 were held by the general public.
ABC Ltd. is a ______ company.
Options
Private
Government
Associate
Subsidiary
MCQ
Fill in the Blanks
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Solution
ABC Ltd. is a government company.
Explanation:
ABC Ltd. is a government company because more than 50% of its shares (₹ 51,000 out of ₹ 100,000) are held by the Maharashtra State Government. According to Indian company law, a company is classified as a government company if the government holds at least 51% of the shares.
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