Explain the features of a government company.

1.	Explain the features of a government company.
Answer» 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. 3. Management and control Its management is done by a board of directors. The majority of directors are appointed by the government. The government also appoints the chief executive officer. 4. Flexibility Government company enjoys autonomy and flexibility in internal operations. It has its own rules and regulations. it must follow the provisions of the Company Act. 5. Staffing Government company hires its own employees. Their salaries and facilities are as per company rules. 6. Public accountability Public accountability is another notable feature of government company. It is accountable to public through parliament. The auditor general or his representative audits its books of accounts and reports its performance.

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