Joint Stock Company (VSAQs)

Commerce-1 | 5. Joint Stock Company – VSAQs:
Welcome to VSAQs in Chapter 5: Joint Stock Company. This page includes the most important FAQs from previous exams. Each answer is provided in simple English and presented in the exam format. This approach helps you prepare effectively and aim for top marks in your final exams.

Overview:

VSAQ-1: What is a Government Company?

A Government Company is like a business owned mostly by the government. Imagine a company where more than 51% of the shares are held by the central government, one or more state governments, or a mix of both. This means that the government has control over the company’s decisions and operations. For example, companies like ONGC (Oil and Natural Gas Corporation) and NTPC (National Thermal Power Corporation) are government companies. They operate like regular businesses, but with the government being the major owner, the company ensures that it serves the public interests while still running efficiently, like any other business.

VSAQ-2: What is a One-Person Company?

A One Person Company (OPC) is like running a business all by yourself, but with the legal protection of a company. Imagine you want to start your own business and you don’t want to involve any partners. Under the Companies Act, 2013, you can create an OPC where you are the sole owner and the only member. This setup is great for entrepreneurs who want complete control over their business. In an OPC, you hold all the shares of the company, and while the law requires at least one other person to be listed (often called a dummy member), they usually have no real control or responsibilities. This structure allows you to enjoy the benefits of a company while keeping things simple, especially if you want to start small.