1.

Explain the types of companies from the view point of dominationORExplain : Government companyORExplain: Holding companyORExplain subsidiary company.

Answer»

Companies from the point of view of domination:
1. Government company:

  • A company whose 51 % or more capital is held by either
    1. Central government or
    2. State government or
    3. more than one state governments or
    4. Central government and one or more than one state governments is called a government company.
  • For example, Ashok Hotels Limited, Bharat Heavy Electricals Limited (BHEL), Bharat Sanchar Nigam Limited (BSNL), etc. are government companies.

2. Holding company:
A company which holds more than 50% shares of another company and holds the right to appoint majority of directors of that company is called a holding company.

3. Subsidiary company:
A company whose more than 50% shares are with the holding company and the right to appoint majority of its directors also lie with the holding company is called a subsidiary company.

Types of companies with the view point of place of registration.
1. Indian company:

  • A company which is registered in India under the Indian Companies Act or under the special act passed by the parliament is called an Indian company.
  • An Indian company can be private company, public company or government company.

2. Foreign company:
A company which is registered outside India and whose registered office is also outside India, but whose place of business is in India is called a foreign company. For example, Vodafone.



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