The correct answer is D. all of above.
A government company is a company in which the central government or any state government or both hold more than 50% of the paid-up share capital. The Companies Act, 2013 defines a government company as follows:
“Government company” means any company in which not less than fifty-one per cent 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 of such a company.”
The Companies Act, 2013 also provides for the following provisions with respect to government companies:
- The Central Government or any State Government may, by notification in the Official Gazette, direct that any company in which that Government or Governments hold not less than fifty-one per cent of the paid-up share capital shall be a government company.
- The Central Government may, by notification in the Official Gazette, direct that any company which is a subsidiary of a government company shall be a government company.
- The Central Government may, by notification in the Official Gazette, direct that any company which is a government company shall cease to be a government company.
The following are the main features of a government company:
- It is a company in which the central government or any state government or both hold more than 50% of the paid-up share capital.
- It is a body corporate having perpetual succession and a common seal.
- It is capable of suing and being sued in its own name.
- It is subject to the provisions of the Companies Act, 2013.
- It is managed by a board of directors.
- The board of directors is appointed by the central government or any state government or both.
- The board of directors is responsible for the management of the affairs of the company.
- The company is subject to the audit of the Comptroller and Auditor General of India.
- The company is required to file its annual accounts and balance sheet with the Registrar of Companies.
- The company is required to pay income tax on its profits.
Government companies play an important role in the economy of India. They are involved in a variety of activities, such as manufacturing, infrastructure development, and providing services. They are also involved in the development of backward areas and in the promotion of exports.