Question

ABC Ltd. is a company incorporated under the Companies Act, 2013. The paid-up share

capital of the company is held as under:

Government of India

20%

Government of Andhra Pradesh

20%

Government of Tamil Nadu

10%

Government of Maharashtra

10%

Explaining the provisions of the Companies Act, 2013, stating whether the said company be

called a ‘Government company’ and also whether the employees of a Government company

can claim their salaries from the Government of India​

Answer 1

Answer:

Section 2(45) of the Indian companies act, 2013, defines government company as, "Any company in which not less than 51% of the paid up share capital is held by the central government, or by any state government."