Explain the features of a government company.

Explanation

Features of a government company are
1.Formation


Government company is created by government under the Company Act. It has separate legal status and it can buy, sell and own property in its own name. Government company can sue and be sued in courts. Main motive of government company is to provide service and also earn profit.


2. Capital


The government provides at least 51% of share capital. It can issue shares to public and can borrow funds from government and public. But the government liability is limited to the face value of shares subscribed.


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