XYZ is a company incorporated under the Companies Act, 2013. The paid up share capital of the company is held by others as on 31.03.2024 in as…

Under the Companies Act,2013, a Government company is defined in Section 2 (45) as a company in which not less than51% of the paid-up share capital is held by: The Central Government, orAny State Government or Governments, orPartly by the Central Government and partly by one or more State Governments, And includes a company which is a subsidiary company of such a Government company. In the instant case, total Government Shareholding is40% [i.e.20% (Government of India) +10% (Government of Tamil Nadu) +10% (Government of Rajasthan)] =40% The holding of the Life Insurance Corporation of India i.e.8% and ABC Limited i.e.15%, total amounting to 23% cannot be taken into account while counting the prescribed limit of51%. Since the total shareholding held by the Central Government and State Governments combined is40%, which is less than51%, XYZ Limited does not qualify to be a Government company under the provisions of the Companies Act,2013.