Question

Name the form of public sector enterprises that is constituted as an autonomous unit by an Act of Parliament. Explain any five features of such an organisation.

Answer 1

Answer: Government Company.

Explanation:

Features of government company are -

1) Created under Companies Act, 2013

2) Can file a suit against any 3rd party and can be sued

3) Can enter into a contract and acquire property in it’s own name

4) The management of the company is regulated by the provisions in the Companies Act like any other public ltd company

5) The employees are appointed according to their own rules and regulations as contained in the MoA and AoA.