This company is created by passing some special Act of Parliament, that is by the Government of the country. All the rules and regulations are passed in the form of Act which relates to particular organization for which it is framed and passed. In our country at the beginning when private capital was shy and private persons were afraid investing their money in business, Government took initiative and created National Bank of every country. An industrial Development Corporation like, State Bank , or Head Bank of every country, its functioning is more or less the same as of registered companies Government controls majority of shares them the public. It is created as an artificial person having separate entity.
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