Government establishments have certain features that make them unique from other types of undertakings. These are detailed as follows:
- It is an enterprise created by the Indian Companies Act, 1956;
- The company can, against any third party, file a suit in a court of law and be sued;
- The company can acquire property in its own name by entering into a contract;
- Like any other public limited company, the administration of the company is regulated by the provisions of the Companies Act;
- The Memorandum and Articles of Association of the company contains rules and regulations. It is according to this that the employees of the company are appointed. The Memorandum and Articles of Association contain the objects of the company and its rules and regulations are the main documents of the company
- These companies are excused from the accounting and audit rules and procedures. An auditor is appointed by the Central Government and the Annual Report is to be submitted in the State legislature or the parliament;
- The government organisation receives its finances from government shareholdings and other private shareholders. It is also allowed to raise funds from the capital market.