Question

Q3) Explain Government Company and its features​

Answer 1

Explanation:

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

Definition, Features, Advantages, Disadvantages of Government Companies

Government Companies Definition and FeaturesA government company is a company in which the Government or State Government holds 51% or more of the paid-up capital. Government Company, also called Public Enterprise, State Enterprise. It works as other companies registered under the Companies Act.

Features of Government Companies

The main features of Government companies are as follows:It is registered under the Companies Act.It has a separate legal entity. It can sue and be sued and can acquire property in its name.The annual reports of the government companies are required to be presented in parliament.The capital is wholly or partially provided by the government. In the case of a partially owned company, the capital is provided both by the government and private investors. But in such a case, the central or state government must own at least 51% shares of the company.It is managed by the Board of Directors. All the Directors or the majority of Directors are appointed by the government, depending upon the extent of private participation.Its accounting and audit practic s are more like those of private enterprises, and its auditors are Chartered Accountants appointed by the government.

Its employees are not civil servants. It regulates its personnel policies according to its articles of associations

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