This article will help you to learn about the difference between a government and a non-government company.
Difference between Government Company and Non-Government Company
Government Company
1. Ownership of Capital:
Not less than 51% of the share capital is held by the Central Governments and/or one or more state Governments.
2. Auditing of Accounts:
The accounts of Government companies are audited by the auditors appointed by the Government and their reports are commented by the Comptroller and Auditor General of India.
3. Annual Report:
The annual report of Government companies are submitted to parliament or to the special committee formed by parliament for the purpose.
4. Modification:
The central government with the approval of parliament may declare that the provisions of the companies act other than sections 618 and 619 shall not be applicable to the government companies or shall be applicable with certain exceptions, modification and adaptations.
Non-Government Company
1. Ownership of Capital:
The share capital is held by the promoters and/or the investing public.
2. Auditing of Accounts:
The accounts of Non- Government companies are audited by a private practicing auditor at the discretion of the Board of Directors.
3. Annual Report:
The annual reports are not required to be submitted to parliament.
4. Modification:
In case of Non-Government companies the central government cannot issue any such order.