Company form of Business Organisation

Any company where not less than 51% of paid-up share capital is held by Central or State Government or partly by both

Step 1: Section 2(45) of the Companies Act 2013 provides the precise legal definition of a Government Company. Step 2: It states that a Government Company is 'any company in which not less than 51% of the paid-up share capital is held by the Central Government, or by any State Government or governments, or partly by Central Government and partly by one or more State Governments.' Step 3: This includes a subsidiary company of such a government company as well. Step 4: Option A is wrong – 100% ownership is not required; even 51% qualifies. Option C describes a Statutory Corporation (like LIC or

A Statutory Corporation is incorporated under a special Act of Parliament whereas a Government Company is registered under the Companies Act 2013

Step 1: Both Statutory Corporations and Government Companies are forms of public sector enterprises but differ fundamentally in their mode of creation. Step 2: A Statutory Corporation (e.g., LIC, SBI) is created by a SPECIAL ACT passed by Parliament or State Legislature. Its powers, functions, management, and accountability are all governed by that specific Act. Step 3: A Government Company (e.g., BHEL, NTPC) is registered under the Companies Act 2013 and follows all regulations applicable to any registered company. Step 4: Option A is incorrect – both can make profits. Option C is incorrect –

Holding of Annual General Meeting (AGM)

Step 1: One Person Company (OPC) is a special type of private company with only ONE member, introduced under Section 3(1)(c) of the Companies Act 2013. Step 2: Because there is only one member (owner), having a formal Annual General Meeting (AGM) would be redundant – there is no other member to consult. Hence, OPCs are exempt from holding AGMs. Step 3: Additionally, OPCs are also exempt from preparing cash flow statements, and their annual return can be signed by a Director (not necessarily a Company Secretary). Step 4: However, OPCs must still file annual returns, maintain books of accounts,

Separate Legal Entity

Step 1: The concept of 'Separate Legal Entity' means that a company is a distinct legal person, separate from its members. This was famously established in the Salomon v Salomon case. Step 2: The 'Corporate Veil' refers to the legal separation between the company and its members – the company acts as a 'veil' protecting members from personal liability. Step 3: 'Lifting the Corporate Veil' is a legal doctrine used by courts when the separate legal entity principle is misused – for example, to commit fraud or evade taxes. In such cases, courts ignore the separate entity and hold the members pers