Hey can u pls tell me the difference between government company and deemed government company?
CA AYUSH AGRAWAL
(Kolkata-Pune-Mumbai)
(26986 Points)
Replied 26 November 2010
Govt Co - Undertaking by Goverment
Deemed : on Which Share of Govt Got More Than 50%
sreekanth
(student)
(40 Points)
Replied 26 November 2010
These companies are owned and managed by the central or the state government. According to Indian Companies Act, 1956, a government company means "any company in which not less than 51 percent of the paid up share capital is held by the central or by state government and partly by the central government and include a company which is a subsidiary of government company".
wat do u say about dis.
MOHIT MAHAJAN
(LCS, ACA)
(2050 Points)
Replied 26 November 2010
In my opinion
Government co. = In which not less than 51% share is held by central/state government ONLY (sec. 617)
Deemed Government co. = In which not less than 51% share is held by central/state government + other government co./corporations owned by government. (sec. 619B)
Thus in government co. its mandatory that central/state government should have not less than 51% share but in Deemed Government co. central/state government may have less than 51% share or no share at all but when its combined with share of other government co. or corporation owned by goverment then share exceeds 51%.
For exp -
In XYZ co. say 20% share is of central/state government and 30% of BHEL And 10% of LIC. XYZ will be a deemed government co. and not a government co.
In ABC Ltd. 20% share is of LIC, 20% OF IDBI, 15% of BHEL, its also deemed government co. and not a government co.
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