In a Government Company, what minimum portion of the paid-up capital must be held by the Government?

Correct option is C

A Government Company, as defined under Section 2(45) of the Companies Act, 2013, is a company in which not less than 51% of the paid-up share capital is held by:
· The Central Government, or
· Any State Government(s), or
· Partly by the Central Government and partly by one or more State Governments.
This 51% minimum ensures controlling interest of the Government in the company, giving it the authority to administer and manage the company. Many Public Sector Undertakings (PSUs), like ONGC, GAIL, and SAIL, fall under this category.
Hence, the correct answer is (c) 51%.
Information Booster
1. Government companies follow the Companies Act, 2013, not fully the rules applicable to government departments.
2. Their accounts are audited by CAG (Comptroller and Auditor General of India).
3. They enjoy operational autonomy compared to traditional government departments.
4. They can be listed or unlisted entities depending on shareholding pattern.
5. Even subsidiaries of government companies are also treated as government companies.