Identify the form of public sector enterprise in the following cases:
(a) This is the oldest and traditional form of public enterprise.
(b) Special act of the parliament brings this public enterprise into existence.
(c) Minimum 51% of the paid up capital is held by Government.
Identify the form of public sector enterprise in the following cases:
(a) This is the oldest and traditional form of public enterprise.
(b) Special act of the parliament brings this public enterprise into existence.
(c) Minimum 51% of the paid up capital is held by Government.
(a) This is the oldest and traditional form of public enterprise- Departmental Undertaking
• These enterprises are established as departments of the ministry and are considered part or an extension of the ministry itself.
• They act through the officers of the Government and its employees are Government employees.
• These undertakings may be under the central or the state government and the rules of central/state government are applicable.
• Examples of these undertakings are railways and post and telegraph department.
(b) Special act of the parliament brings this public enterprise into existence- Statutory Corporations.
• Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament.
• The Act defines its powers and functions, rules and regulations governing its employees and its relationship
with government departments.
• They have the power of the government and considerable amount of operating flexibility of private enterprises.
(c) Minimum 51% of the paid up capital is held by Government- Government Company.
• According to the section 2(45) of the Companies Act 2013, a government company means any company in which not less than 51 per cent of the paid up capital is held by the central
government, or by any state government or partly by Central government and partly by one or more State governments and includes a company which is a subsidiary of a government
company.
• There are certain provisions which are applicable to the appointment/retirement of directors
and other managerial personnel.
• The shares of the company are purchased in the name of the President of India.
• Since the government is the major shareholder and exercises control over the management of these companies, they are known as government companies.
(a) This is the oldest and traditional form of public enterprise- Departmental Undertaking
• These enterprises are established as departments of the ministry and are considered part or an extension of the ministry itself.
• They act through the officers of the Government and its employees are Government employees.
• These undertakings may be under the central or the state government and the rules of central/state government are applicable.
• Examples of these undertakings are railways and post and telegraph department.
(b) Special act of the parliament brings this public enterprise into existence- Statutory Corporations.
• Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament.
• The Act defines its powers and functions, rules and regulations governing its employees and its relationship
with government departments.
• They have the power of the government and considerable amount of operating flexibility of private enterprises.
(c) Minimum 51% of the paid up capital is held by Government- Government Company.
• According to the section 2(45) of the Companies Act 2013, a government company means any company in which not less than 51 per cent of the paid up capital is held by the central
government, or by any state government or partly by Central government and partly by one or more State governments and includes a company which is a subsidiary of a government
company.
• There are certain provisions which are applicable to the appointment/retirement of directors
and other managerial personnel.
• The shares of the company are purchased in the name of the President of India.
• Since the government is the major shareholder and exercises control over the management of these companies, they are known as government companies.
