Question

Minimum paid up capital to be kept by the government of a government company is ______.

• A. 35%
• B. 75%
• C. 51%
• D. 50%

Answer 1

Answer: (C)

51%

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. A government-owned corporation is a legal entity that undertakes commercial activities on behalf of an owner government.