Question

Chennai Pharmaceuticals Co. Ltd., registered under the Companies

Act, 2013, was started with a paid-up capital of ` 50,00,000. 40% of this

paid-up capital is in the hands of private individuals and the balance is held

by the Government of Chennai. Chennai Pharmaceuticals Ltd. belongs to

which form of public sector enterprise. State it’s any two features and any two

merits.​

Answer 1

Explanation:

donor in general is a person, organization or government which donates something voluntarily. The term is usually used to represent a form of pure altruism, but is sometimes used when the payment for a service is recognized by all parties as representing less than the value of the donation and that the motivation is altruistic. In business law a donor is someone who is giving the gift (law), and a donee the person receiving the gift.

More broadly, the term is used to refer to any entity that serves as the source of something transferred to a different entity, including - in scientific fields - the source of matter or energy passed from one object to another.

The Online Etymology Dictionary traces the English-language word "donor" back to the mid-15th century, with origins in Anglo-French, Old French, Latin and Proto-Indo-European.[1]

Answer 2

Answer:

A state company is formed under the Indian Companies Act 1956.  Companies Act 1956 means a public company  any company in which not less than 51 per cent of the paid-up capital is owned by the central government or a state government or partly by the central government and partly by one or more state governments.

Features:

• It is registered under the Companies Act 1956. It has a separate legal entity.You can sue and be sued, and you can acquire property in your own name.
• The management of the company is governed by the provisions of the Companies Act.
• Recruitment and hiring of staff is carried out in accordance with the rules and regulations contained in the articles of association and articles of association.
• These companies are exempt from  accounting and auditing rules and procedures.
• The state company draws its funds from the shares of the state and other private shareholders.

Merits

• It has its own legal personality alongside the government. She enjoys flexibility and autonomy in all management decisions.
• These companies are able to control the market by offering goods and services at reasonable prices.
• Forming a state company is easy  compared to other forms of state company. You can appoint professional managers with high salaries.

Limitations:

• Avoids constitutional responsibility as it does not answer directly  to Parliament.

• They are autonomous  in name only. The company is operated by the Ministry of Control.
• The Corporations Act generally does not make sense for state-owned corporations as it requires compliance with various formalities.

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