Question

Explain the following term/concept.

Government Company.

Answer 1

1. It is a company where 51% of the paid up capital is held by the Central Government or State Government jointly or individually.
2. It is managed by the Board of Directors appointed by Government and Shareholders.
3. It is formed and registered under the Companies Act, 2013.
4. They can borrow funds by issuing shares to the public or through debentures, deposits, etc.