Government Company Features, Government Company Definition Features Advantages Disadvantages Of Government Companies
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Provisions of company law are applicable to government companies also.
Government of india id. Hindustan machine tools state trading corporation hindustan steel ltd hindustan aeronautics etc. It is formed under the provisions of the indian companies act 1956. The management is governed and regulated by the provisions of companies act.
It works as other companies registered under the companies act. A government company is defined under section 245 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. In the latter case a government company is known as a mixed ownership company.
Features of government company are as follows. Features of a government company. The total share capital or 51 percent or more of share capital is held by the government.
Following are the features of government company. Meaning and features of government company. Features of government company.
Government company also called public enterprise state enterprise. It has a separate legal entity perpetual succession and a common seal. 1956 2013 like other companies do.
They need to follow the provisions of the indian companies act. A government company is formed and registered under the companies act 1956 as a public company or a private company. There are some distinct characteristics or features of government such as created by government flexibility accountability etc.
A government company is a company in which the government or state government holds 51 or more of the paid up capital. Government companies are governed by the provisions of the companies act 1956. The following are some of the features of government companies.
Characteristics of a government company. Government company is a type of business company which is established under the company act in which majority of share capital is provided by government. Following are the salient features of a government company.
The whole of the capital or 51 or more is owned by the government. Its employees excluding those on deputation are not civil servants. Government companies are established under companies act by the government.
It is incorporated under companies act 1956 2013. Features of government companies. It is a separate legal entity.
The memorandum of association and articles of association govern the appointment of employees. It enjoys the status of a legal entity and therefore it can use or be sued by others. Definition features advantages disadvantages of government companies.
The following are some of the essential features of a government company. Features of a government company.
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