Goverment company

5.classification on the basis of ownership:

On the basis of ownership, a company may be a-

1.goverment company, or

2.non-govt company.

The letter is controlled and operated by private capital.

Govt . company:

A companyof government means any company in which not less than 51 % of the paid up capital is held by

a) The central government, or

b) Any state government or governments, or

c) Partly by the central govt and partly by one or more state governments.the subsidery of a government company is also a government company.

Rules applicable to government companies:

1. Appointment of auditor and audit reports.

2. Annual report to be placed before parliament.

3. Provisions of apply to certain companies.

4. Certain provisions of the companies act not to apply.