Question

State minimum amount to capital held by government in government company

Answer 1

A government company is said by its name because it is the owner of the company with majority amount of shares to its name. Though the company is run by other share holders who are in the board of directors but the government is the head of directors.

Therefore the minimum amount of capital held by government in the company will be 51% of the overall shares and it has also been stated in the Companies act in 2013.

Answer 2

Solution: In any government company, the minimum share or capital held by the government is not less than 51 percent of the total paid up capital. 51 % of the total paid up capital is held by central government or state government or jointly.

Basically, PSUs or Public sector undertakings come under government owned companies with the total share of 51 %.