Corporate and Other LawsQuestion 5353 of 221
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2. Based on the shareholding pattern of JK Logistics Ltd. and RK Logistics Ltd., select the correct answer as to the classification of these companies:

Options

ARK Logistics Ltd. is a government company while JK Logistics Ltd. is a non-government company.
BRK Logistics Ltd. is a non-government company while JK Logistics Ltd. is a government company.
CRK Logistics Ltd. and JK Logistics Ltd. both are government companies.
DRK Logistics Ltd. and JK Logistics Ltd. both are non-government companies.
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Correct Answer

Option ARK Logistics Ltd. is a government company while JK Logistics Ltd. is a non-government company.

All Options:

  • ARK Logistics Ltd. is a government company while JK Logistics Ltd. is a non-government company.
  • BRK Logistics Ltd. is a non-government company while JK Logistics Ltd. is a government company.
  • CRK Logistics Ltd. and JK Logistics Ltd. both are government companies.
  • DRK Logistics Ltd. and JK Logistics Ltd. both are non-government companies.

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Detailed Solution & Explanation

Under Section 2(45) of the Companies Act, 2013, a "Government company" is defined as any company in which not less than fifty-one percent (51%\displaystyle 51\%) of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company.
Based on the shareholding pattern of the companies: - RK Logistics Ltd. qualifies as a Government company because the government's holding is at least 51%\displaystyle 51\%. - JK Logistics Ltd. does not meet this threshold and is therefore classified as a non-government company.
Hence, **Option A** is the correct answer.

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