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Question

A government company is any company in which the paid-up capital held by the government is not less than

(a) 49 percent

(b) 51 percent

(c) 50 percent

(d) 25 percent

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Solution

In a government company, the paid-up capital held by the state or central government is at least 51 percent of the total shares. In case the percentage of shares held by the government falls below 51, then the organisation cannot be regarded as a government company. In case, the government holds 49 per cent of shares in a company, the company is considered as a private organisation.

Hence, the correct answer is option (b).


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