Multiple choice

Which of the following statements is true in case of government company?

  1. A company in which not less than 51% of the paid-up capital is held by Central Government or State Government, jointly or separately, is called government company.

  2. The subsidiary of a government company is called as government company whether public company or private company.

  3. The government company being a private company is not required to use the word Pvt. Limited at the end of the name of the company.

  4. The company under the control of only Central Government is called as government company.

  5. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

As per section 617 of Companies Act, 1956, the company in which not less than 51% of the paid-up capital is held by central government or State Government, jointly or separately, is called government company. The subsidiary of a government company is called as government company whether public company or private company, and the government company being a private company is not required to use the word Pvt. Limited at the end of the name of the company. The correct option is (5).

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