(i) If the entire share capital of the corporation is held by Government, it would go a long way towards indicating that the corporation is an instrumentality or agency of government;
(ii) Existence of deep and pervasive State control may afford an indication that the corporation is a State agency or instrumentality;
(iii) It may also be a relevant factor... whether the corporation enjoys monopoly status which is State conferred or State protected;
(iv) If the functions of the corporation are of public importance and closely related
to Government functions, it would be a relevant factor in classifying the
corporation as an instrumentality or agency of government;
(v) Specifically, if a department of Government is transferred tc a corporation it would be strong factor supporting this inference of the corporation being an instrumentality or agency of Government.
It should be noted, however, that the tests referred to above are not individually decisive; their cumulative effect in each particular case has to be taken into account.
A Government Company-Whether a Private or Public Company
Should a government company be incorporated as a private company or a public company, is a question on which the Companies Act, 1956 is silent. As a result, a government company may be incorporated either way.
Exemptions
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