Charlotte Miller

What Is Government Company?

Are you curious to know what is government company? You have come to the right place as I am going to tell you everything about government company in a very simple explanation. Without further discussion let’s begin to know what is government company?

Government companies form a significant component of the corporate landscape, blending public ownership with business objectives. In this article, we will unravel the intricacies of government companies, exploring their definition, features, and their role in the corporate realm.

What Is Government Company?

A government company is a unique corporate entity where the majority of its shares are owned by the government. This distinctive ownership structure allows for a fusion of public administration with commercial activities, defining the character and objectives of the company.

What Is Government Company Class 11:

For students delving into the complexities of company law in Class 11, understanding the concept of a government company is essential. It introduces them to the nuances of corporate structures where the government plays a pivotal role in ownership and governance.

What Is Government Company In Company Law:

In the realm of company law, a government company is defined by its ownership structure. It is a legal entity where the government holds a majority of shares, giving it a controlling stake and influencing the strategic decisions and policies of the company.

What Is Non-Government Company:

In contrast to government companies, non-government companies are entities where the government does not hold a significant ownership stake. These companies are primarily owned by private individuals, institutions, or a combination of both.

Government Company Examples:

Examples of government companies abound in various sectors. National Thermal Power Corporation (NTPC), Air India, and Bharat Heavy Electricals Limited (BHEL) in India are prominent illustrations of government companies operating in the energy and aviation sectors.

Features Of Government Company:

Understanding the features of government companies is crucial for grasping their distinctive nature. These features include:

  • Government Ownership: The government holds a majority of shares, ensuring control over the decision-making process.
  • Public Sector Objectives: While operating as a commercial entity, government companies often have public sector objectives, contributing to societal welfare and economic development.
  • Government Influence: Government representatives may serve on the company’s board, influencing policies and strategic directions.

Features Of Government Company Class 11:

In the academic context of Class 11, students explore specific features of government companies as part of their company law curriculum. This includes delving into the regulatory framework, governance structure, and the balance between public and commercial objectives.

Merits Of Government Company:

Government companies offer several merits, including:

  • Stability and Financial Support: Government backing provides stability and financial support, enhancing the company’s creditworthiness.
  • Public Service Orientation: Government companies often prioritize public service, contributing to sectors vital for national development.

List Of Government Companies In India:

India boasts a diverse array of government companies across sectors. Some notable ones include:

  • Oil and Natural Gas Corporation (ONGC): A key player in the energy sector.
  • Steel Authority of India Limited (SAIL): Contributing to the steel industry.
  • Life Insurance Corporation of India (LIC): A prominent entity in the insurance sector.


In conclusion, government companies form an integral part of the corporate landscape, embodying a unique blend of public ownership and commercial objectives. For students, professionals, and enthusiasts of company law, understanding the features, merits, and examples of government companies provides valuable insights into the intricacies of corporate governance and the role of the public sector in shaping the business landscape.


What Do You Mean By 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 …

What Is The Name For Government Company?

‘Public Enterprises’ or ‘State Enterprises’ are the other names for this Government Company.

What Is A Government Listed Company?

Government-listed companies are the companies whose stocks are traded on the stock exchange. They are traded in both the stock exchanges of India NSE and BSE. These government stock lists will always have a major stake in making the country and making the stock market more competitive.

How Many Types Of Government Companies Are There?

PSUs are officially classified into three categories, which are Central Public Sector Enterprises (CPSE) and Public Sector Banks (PSB) owned by the central government or other CPSEs/PSBs, and State Level Public Enterprises (SLPE) owned by state governments or other SLPEs.

I Have Covered All The Following Queries And Topics In The Above Article

What Is Government Company Class 11

What Is Government Company In Company Law

What Is Non Government Company

Government Company Examples

Merits Of Government Company

Features Of Government Company

Features Of Government Company Class 11

List Of Government Companies In India

What Is Government Company