Question

features of government company ?​

Answer 1

Government Companies

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. These are many government companies, few of them are, Steel Authority of India Limited, Bharat Heavy Electricals Limited, Coal India Limited, State Trading Corporation of India, etc.

The public sector companies in India were incorporated into two main objectives:

• To achieve more equity in the distribution of wealth and income amongst the citizens of the country.
• To gain the momentum in the growth of the nation.

The following are the 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.
• 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. This agency is mainly Comptroller and Auditor General of India (C&AG).

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