mentioned provisions,Companies, Movement companies, Central Government

It may be inferred from the above mentioned provisions that the Companies (Amendment) Act, 1974 intends to bring foreign companies into the ambit of the provisions applicable to Indian companies.
4. Government Company. A Movement company is defined en Section 617 as "any company in which not less than 51 per cent of paid-up. share capital is held by the Central Government or by an State Movement or Governments or partly by 'die Central Government and partly by one or more State Governments and includes a company winch is a subsidiary of a
The special provisions of the Companies Act relating to Movement companies are as follows As regards suit. (a) The auditor of a Movement company shall be appointed or reappointed by the Central Government on the advice of the Comptroller and Auditor General of India, provided that the auditor so appointed or reappointed does not hold apartment as auditor in more than hyena,' companies, of which not more than ten co lid be companies with paid
INCORPORATION OF A COMPANY 51
2. As regards ammua7 reports. (a) Where the Central Government is a member of a Giver Dent compare. N, the Central Internment shall prepare an annual report ontbev-orand affairs of the company N with three months of its annual general meeting before thick the audit report is placed The ammonal report is to be laid before both Houses of Parliament together Ninth a copy of tile audit report and an comments thereupon, made by the ComptroBer and Auditor General of India
(b) Where in addition to the Central Government, any State Government is also a member of a Given Tent company, that State Government shall place a copy of the annual report (prepared by Central Government) together with a copy of the audit report and the comments (referred to earlier before the House to both Houses of ice State Legislahlre
NM Eire the Cent M I Government is not a member of a Government company every State Govern Tie it which is a member shall Chills e an annual report on the wor and affairs of the company to be prepared within the same time (as referred to above), and then soon after lay it before the Hones or both Houses of the State 7 on Filature with a copy of the audit report and continents thereupon
3. As r ends the application of the Cornpones Act. A Government company is to be registered under the Companies Act. It maybe incorporated as a public' or private' company The Central Govenitnent may, however, by notification in the official Gazette, direct that any of the provisions of tills Act shall not apply to any Government company or shall apply only with such exceptions, modifications and adaptations, as may be specified in the notification. The notification shall be effective to the extent to which it is approved by Par Tent (Sec. 620). .Suh.Ject to such cortication, such companies age Caned by the Companies act hake any other limited company without any discrintinahon Tote Central Government has issued notifications (published in the Gazette of India, dated 11 Fernery and 4 March 1978) granting exemptions to Government co map nubs fro m the application or certain Sections of the Compares Act. For example, they have been exempted from
52 i 'S: SECRETARIAL PRACTICE
'Incorporation OF A COMPANY 53