Bharat Infrastructure Ltd. was incorporated in India with 55% of its paid up share capital held by the Central Government, 20% by a State Government, and the remaining 25% by private investors. Some private shareholders argued that government control was not absolute and therefore the company should not be classified as a Government Company. Decide with reference to the Companies Act, 2013.

Section 2(45) of the Companies Act, 2013 defines a government company as one in which not less than 51% of the paid-up share capital is held by the Central Government, State Government(s), or jointly by the Central and State Governments. In the instant case, the Central and State Governments together held 75% of the paid-up share capital of Bharat Infrastructure Ltd. The remaining 25% was private investors. Taking into account the provisions of the Companies Act, 2013, Bharat Infrastructure Ltd. is a Government Company, since the combined government holding exceeds 51%. The argument of the private shareholders is untenable.