Under Section 2(45) Companies Act 2013, a 'Government Company' is a co…

Question

Under Section 2(45) Companies Act 2013, a 'Government Company' is a company in which:

Accepted Answer

C. not less than fifty-one per cent of the paid-up share capital is held by the Central Government, or by any State Government(s), or partly by Central + State(s); includes a subsidiary of a Government company

1. Section 2(45) defines 'Government Company' as: any company in which NOT LESS THAN FIFTY-ONE PER CENT of the paid-up share capital is held by — (a) the Central Government; (b) any State Government or Governments; or (c) 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.
2. The threshold is FIFTY-ONE PER CENT, not 26 or 30 per cent.
3. CAG performs audit of Government Companies under Section 143(5)-(7).
4. Hence option C is correct.
_Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013, Section 2(45)_

Answer

the Central Government holds 30 per cent of the paid-up share capital directly (cf. Companies Act 2013, Section 2(45)) (cf. Companies Act 2013, Section 2(45))

Answer

any State Government holds 26 per cent of paid-up share capital, regardless of Central (cf. Companies Act 2013, Section 2(45)) (cf. Companies Act 2013, Section 2(45))

Answer

the Central Government holds any voting rights via a Special Resolution, regardless of capital (cf. Companies Act 2013, Section 2(45)) (cf. Companies Act 2013, Section 2(45))