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A government company is a company in which not less than 51 percent of the paid-up share capital is held by the Central Government, State Government, or jointly by both Central and State Governments. It is registered under the Companies Act and has a separate legal identity from the government. Such companies are established to combine the advantages of business management with the objectives of public welfare and economic development. Examples include public sector companies such as Steel Authority of India Limited (SAIL) and Bharat Heavy Electricals Limited (BHEL). Government companies have several important merits. First, they enjoy greater managerial flexibility because __________ ______ ________ _________ __________ ______ ___.
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