Difference b/w government company and public limited company
Querist :
Anonymous
(Querist) 09 January 2012
This query is : Resolved
dear sir/madam
1) please let me know what is the difference b/w government company and public limited company ?
2) if a public LTD company is a subsidiary (commercial wing) of a Govt department(PSU) and its pay salaries to its Employees from its own profit. would the salaries etc being paid to its employees be considered as out of Public Finance/Fund or otherwise?
3) earning and expenditure of public ltd company (subsidiary of a Govt department(PSU) are part of govt exchequre?
Anirudh
(Expert) 09 January 2012
Can you please indicate the purpose for which you ask this information?
Querist :
Anonymous
(Querist) 09 January 2012
Yes , i m HR officer in a PSU and i need this info to sort out a case. please help me.
Anirudh
(Expert) 09 January 2012
Being a PSU, a consultation with the Legal Department would have provided the needed clarification to you. However, for the reasons best known to you, and as is the wont of every officer in an organization not to consult within, you have chosen to pose the query here.
The answer to your query is as under:
Section 617. DEFINITION OF "GOVERNMENT COMPANY"
For the purposes of this Act, Government company means any company in which not less than fifty-one per cent 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 and includes a company which is a subsidiary of a Government company as thus defined.
Reference to Public Limited Company appears only at two places in the entire Companies Act i.e. in Section 581C.
Section 581C. FORMATION OF PRODUCER COMPANY AND ITS REGISTRATION
(1) Any ten or more individuals, each of them being a producer or any two or more Producer institutions, or a combination of ten or more individuals and Producer institutions, desirous of forming a Producer Company having its objects specified in section 581B and otherwise complying with the requirements of this Part and the provisions of this Act in respect of registration, may form an incorporated Company as a Producer Company under this Act.
(2) If the Registrar is satisfied that all the requirements of this Act have been complied with in respect of registration
and matters precedent and incidental thereto, he shall, within thirty days of the receipt of the documents required for
registration, register the memorandum, the articles and other documents, if any, and issue a certificate of incorporation under this Act.
(3) A Producer Company so formed shall have the liability of its Members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them and be termed a company limited by shares.
(4) The Producer Company may reimburse to its promoters all other direct costs associated with the promotion and
registration of the company including registration, legal fees, printing of a memorandum and articles and the payment
thereof shall be subject to the approval at its first general meeting of the Members.
(5) On registration under sub-section (1), the Producer Company shall become a body corporate as if it is a private limited company to which the provisions contained in this Part apply, without, however, any limit to the number of Members thereof, and the Producer Company shall not, under any circumstance, whatsoever, become or be deemed to become a public limited company under this Act.
Deepak Nair
(Expert) 09 January 2012
I too endorse the views of Mr. Anirudh. You are sufficiently advised.
Dear Mr. Anirudh.
Please accept thanks from my part too for such a detailed explanation.
prabhakar singh
(Expert) 09 January 2012
I agree with the views of Mr. Anirudh. You are sufficiently guided.
