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<h1>Govt Companies Exempt from Section 295 of Companies Act 1956; Approval Required from Relevant Ministry or State.</h1> The notification GSR 581(E), dated July 16, 1985, issued under the Companies Act, 1956, states that section 295 of the Act will not apply to government companies. This is in exercise of the powers under section 620(1) and supersedes a prior notification from May 24, 1978, except for actions already taken under it. However, government companies must obtain approval from the relevant Ministry or Department of the Central Government, or the State Government, that administratively oversees the company.