Question

write a short note on government companies

Answer 1

A public enterprise incorporated under the Indian Companies Act, 1956 is called a government company. These companies are owned and managed by the central or the state government. According to Indian Companies Act, 1956, a government company means “any company in which not less than 51 percent of the paid up share capital is held by the central or by state government and partly by the central government and include a company which is a subsidiary of government company”. These companies are registered as private limited companies though their management and their control vest with the government. This is a type of organisation where both the government and private individuals are shareholders. Sometimes these companies are called as a mixed ownership company.