There are numerous differences between Government Company and Public Limited Company. In this blog, we will briefly discuss the vast difference between Government Company and Public Limited Company.
Let's start the journey!
Government Company - A Government company is a company in which at least 51% of the paid up share capital is held by the Central Government or a State Government or jointly by both.
Public Limited Company - A Public Limited company is the legal designation of a limited liability company that has offered shares to the general public having limited liability.
Government Company- In a Government Company not less than 51% of the paid-up share capital is held by the central government or by the state government or jointly by the central or one or more State Governments. The total paid-up capital owned by one or more governments should be 51% or more than that to form a Government company.
Public Limited Company - In the case of public limited companies, a major share of the paid-up capital is held by the Private Individual. The minimum paid-up share capital of a public limited company is Rs 5 Lakh.
Government Company- The auditor of a government company is appointed by the Government on the advice of the Comptroller and Auditor General of India (CAG). CAG is also empowered to direct the auditor about the manner and method of auditing.
Public Limited Company - In a Public Limited Company, the auditor is appointed by the General Body of the Company.
Government Company- The annual reports along with the audit reports of a Government company are laid before parliament if it is a Central Government Company. If the Government Company is a State Government Company, then the annual reports of that company are placed before the State legislature.
Public Limited Company - In the case of a Public Limited Company, the annual reports are placed before the General Body.
On the point of applicability of statutory provisions of the Companies Act, there is a huge difference between Government Company and Public Limited Company.
Government Company- Central Government has the power to exempt any provision of the Companies Act from applying to a Government Company except the provisions regarding Audit.
Private Limited Company - So far as Public Limited Company is concerned, Central Government has nothing to do with regard to the provisions of the Companies Act.
Government Company- A Government Company is created by the Articles of Association and Memorandum of Association.
Public Limited Company - Public Limited Company is created by the statute.
The listed public limited company would one whose ownership is disbursed among the general public in the form of shares traded on one or more stock exchanges however a Government company is one where at least 51% of the paid up share capital is held by the Central and/or a state government.
To know more difference between Government Company and Public limited company, kindly take the assistance of Enterslice.