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Under Section 2(45) of the Companies Act, 2013, a "Government Company" means a company in which not less than how much of the paid-up share capital is held by the Central Government, by any State Government(s), or partly by both?
Answer & Solution
Correct answer: C.
1. Section 2(45) of the Companies Act defines a "Government Company".
2. The minimum threshold is 51% of paid-up share capital held by the Central Government, any State Government(s), or partly by both.
3. The definition also includes a company which is a subsidiary of such a Government Company.
4. 26% is the SEBI takeover trigger; 75% is the special-resolution threshold; 49% is the FDI cap in some sectors — none is the Government-Company test.
_Source: ICSI CS Executive Paper 2 (Company Law) — Lesson 1: Introduction to Company Law, pp. 2-35._
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