Multiple choice

Which among the following is a necessary condition for declaring it a company as a Govt. company under the provisions of Companies Act 1956?

  1. It should be fully owned by the Central Govt.

  2. It should be fully owned by the Central and State Govt.

  3. At least 50% of the paid up capital should be owned by the Govt.

  4. At least 51% of the paid up capital should be owned by the Govt.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Government companies, under the provisions of Companies Act 1956, are the companies where the Central Govt. or one or more State Govt. or the Central and the State Govt. (jointly) hold, at least 51 per cent of the paid-up capital.

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