2 Most VSAQ’s of Joint Stock Company Chapter in Inter 1st Year Commerce (TS/AP)

Table of Contents

2 Marks

VSAQ-1 : What is a Government Company?

Government Company is a term used to describe a company in which more than 51 percent of the paid-up share capital is owned by either the central government, one or more state governments, or a combination of both. Examples of government companies include ONGC (Oil and Natural Gas Corporation) and NTPC (National Thermal Power Corporation).

VSAQ-2 : What is a One person company?

A One Person Company (OPC) is defined under the Companies Act, 2013 as a company that has only one person as its member. While the Companies Act has regulations concerning the minimum number of members required to form a company, in the case of an OPC, a single individual holds all the shares of the company. To meet the regulatory requirements, this individual may appoint dummy members, often friends, family members, or relatives, who hold one or two shares each. These dummy members have limited liability and are usually nominated by the sole owner of the company.