Question

Write short Notes on the following.

Features of Government company.

Answer 1

The following are some of the features of a government company:
i. Establishment: They are established under the Indian Companies Act, 1956.

ii. Exemption: They are exempted from the accounting and audit rules and procedures.

iii. Independent funding: They have independent funding and can generate funds from government shareholders, private shareholders and even from capital markets.

iv. Separate entity: A government company is a separate legal entity. Accordingly, it can enter into legal contracts and may acquire property in its name.