Q21
A Government company is one in which ________.
A.
the entire share capital is held by the central and / or state government
B.
50% of capital is held by central government and the remaining 50% by one or more state governments
C.
at least 51% of the capital is held by central and / or state governments
D.
all of above
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
A “Government company” is defined under Section 2(45) of the Companies Act, 2013 as “any company in which not less than 51% of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company”.
Thus, the cardinal feature of a government company is not less than 51% ownership by Central/state government, either individually or jointly.