Question

Define a government company and explain its features.

Answer 1

Answer:

Features of a Government Company

It is a separate legal entity. It is incorporated under Companies Act 1956 & 2013. The management is governed and regulated by the provisions of Companies Act. The Memorandum of Association and Articles of Association govern the appointment of employees.

Answer 2

Answer:

Government Company is a company or an organization in which at least 51% of the paid up share capital is held by the central government or the state government or partly by both central and state government.

Explanation:

features-

-It is a separate legal entity.

-It is incorporated under Companies Act 1956 & 2013.

-The management is governed and regulated by the provisions of Companies Act.

-The Memorandum of Association and Articles of Association govern the appointment of employees.

-A government company gets its funding from government shareholding and other private shareholdings. The company can also raise money from the capital market.

-A government company is audited by the agency appointed by the central government

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