Question

A Govt. production unit registered under companies Act 1956 is a:(a) A statutory corporation (b) Government company(c) Departmental enterprise (d) Non of these

Answer 1

Answer:Option (b) Government company

Explanation:

A Government production unit registered under companies Act 1956 is a Government company.

The central government or the state government controls and manage these Government companies. Under Section 617 of the Companies Act, 1956 “Government Companies” are defined as company which does not have a paid -up share capital of less than 51%and is held by the following:

• The Central Government; or

• Any State Government or governments; or

• Partly by the Central Government and partly by one or more State Governments.

A Government subsidiary company is also considered as a Government company. Though these type of companies are registered as private limited companies  their control and management rest with the government.

Hope this helps.