Tag: meaning and features of government company

Questions Related to meaning and features of government company

A government company can be established by fulfilling the requirements of the Companies Act.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. True

  2. False

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Correct Option: A
Explanation:

Companies Act 1956 was an Act of the Parliament of India, enacted in 1956, which enabled companies to be formed by registration, sets out the responsibilities of companies, their directors and secretaries and also provides for the procedures for its winding.

Government Company refers to the company in which _______  per cent or more of the paid up capital is held by the government.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. 50

  2. 51

  3. 60

  4. 61

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Correct Option: B
Explanation:

A government company is an organization where the investment goverment is more than 51% . There by the control and management lies in the hand of the government.

A special feature of a Government company is _____________.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. special provision for their audit

  2. it is a company of government

  3. an association not for profit

  4. none of the above.

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Correct Option: A
Explanation:

Government companies are exempted from the accounting and audit rules and procedures. The Comptroller and Auditor General of India shall appoint an auditor within a period of one hundred and eighty days from commencement of financial year to hold office till conclusion of the annual general meeting. The annual report is to be presented in the parliament or the state legislature. 

A company is a government company and X Company is a subsidiary of A company then X Company will be a _____________.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. Public Company

  2. Private company

  3. Government company

  4. None of these

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Correct Option: C
Explanation:

A “subsidiary company” or “subsidiary” of a Government Company would also be categorized as a Government Company provided the Government Company
(i) controls the composition of the Board of Directors; or
(ii) exercises or controls more than one-half of the total share capital either at its own or together with one or more of its other subsidiary companies.

Even if the control referred above is of another subsidiary company of the Government company, the company would still be categorized as a “subsidiary” and hence a government company. Thus, joint-venture companies formed by various Government companies or public sector undertakings are also considered as government companies.

Company can be called govt, company if % of paid up share capital is held by government company_____________.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. more than 30

  2. more than 40

  3. more than 50

  4. none

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Correct Option: C

_________ refers to the company in which $51\%$ or more of the paid up capital is held by the government.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. Departmental undertaking

  2. Statutory corporation

  3. Government company

  4. All of the above

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Correct Option: C
Explanation:

Government Company is a company or an organization in which at least 51% of the paid up share capital is held by the central government or the state government or partly by both central and state government.

A company having business operations in India and registered under the Indian Companies Act, 1956 is called Indian Company. An Indian company may be formed as a public limited, private limited or government company.

Bharat Heavy Electrical Limited is _________?

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. Government company

  2. Private sector company

  3. Non-profit making company

  4. All of the above

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Correct Option: A
Explanation:

Bharat Heavy Electricals Limited owned and founded by the Government of India, is an engineering and manufacturing company based in New Delhi, India. Established in 1964, BHEL is India's largest power generation equipment manufacturer.

Which of the following describes the desired future position of the company?

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. Vision statement

  2. Mission statement

  3. Planning statement

  4. Forecasting statement

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Correct Option: A
Explanation:

A vision statement is sometimes called a picture of your company in the future but it’s so much more than that. Your vision statement is your inspiration, the framework for all your strategic planning. 

It describes what you are trying to build and serves as a touchstone for your future actions. A vision statement may apply to an entire company or to a single division of that company.
Whether for all or part of an organization, the vision statement answers the question, "Where do we want to go?"

Central Government has prescribed that public companies with paid up share capital of _________; or turnover of ______; or in aggregate, outstanding loans/ borrowings/ debentures/ deposits/ exceeding ________ as on the last date of latest audited financial statements mentioned below shall also have at least ________ as independent directors.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. Rs.1 crore or more; Rs.10 crore or more; Rs.50 crore or more; 2 directors

  2. Rs.10 crore or more; Rs.100 crore or more; Rs.50 crore or more; 2 directors

  3. Rs.20 crore or more; Rs.150 crore or more; Rs.100 crore or more; 3 directors

  4. Rs.100 crore or more; Rs.1,000 crore or more; Rs.500 crore or more; 3 directors

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Correct Option: B
Explanation:

The Companies Act, 2013 defied a Public Limited Company as a private company means a company having a minimum paid-up share capital of one lakh rupees or such higher paid-up share capital as may be prescribed.Hence, a public limited company can also be started without a minimum capital of rupees five lakhs.

Rs.10 crore or more; Rs.100 crore or more; Rs.50 crore or more; 2 directors.

The companies are governed by the Companies Act, ________.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. $1956$

  2. $1936$

  3. $2013$

  4. $1856$

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Correct Option: C
Explanation:

A Government company is defined under Section 2(45) 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.

Section 2(20) of the 2013 Act defines the term company to mean “a company incorporated under the Companies Act 2013 or any previous company law.The sub-section states that for the purposes of such definition, the expression company includes body corporate.