Company Law and Business Organizations

Public sector enterprise ( PSE ) is the enterprise owned by the union government of India or one of the many state or territorial governments or both. These are the enterprises where the holding power of the government is 51% or more. Hence, PSE's are organisations owned by the central government.

In a private funded companies the shareholders of the company are individuals. They can own the shares individually. But in a public limited company the shares of the company are owned by the government of that state and not individually. Hence, state-owned enterprises differ from privately funded companies because public companies can never belong to individual shareholders.

Public enterprise  are the enterprise where the share of the government is 51% or more. It works basically for the welfare of the people. Gas authority of India Ltd. is owned by the government and works for the welfare of the people. Hence, it is a public enterprise.

Public enterprises are autonomous organisations. They frame their own policies and procedures within the powers assigned to them by the act. The Act may however provide few issues which require prior approval of a particular ministry which makes it semiautonomous organisations also.

Public enterprises is an industrial, commercial or business activity of a government where a return on investment is expected. These  are institution operating service of an economic or social character or behalf of government. Government lays down certain public policies in the public interest and not guided by profit motive in order to govern such companies. 

Public enterprises are autonomous or semi-autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial activities. The key elements of public enterprises are state control and Public accountability. These are managed by the government. In some cases government has started enterprises under its own departments. In other cases, government nominates persons to manage the undertakings. Even autonomous bodies are directly and indirectly controlled by the government departments. The primary aim of state enterprises is to provide service to the society. These enterprises are started with a service motive. A private entrepreneur will start a concern only if possibilities of earning profits exist but this is not the purpose of public enterprises.

1. A departmental undertaking is self- contained but it is under the overall control of the departmental head and the ministry concerned. It is a very old and traditional form of public enterprise. It may be organized as a separate full-fledged ministry.
2. 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. ... It is a corporate person and has the capacity of acting in its own name.
3. Government Company is a company or an organization in which at least 51% of the paid up share capital is held by the central government or the state government or partly by both central and state government.
   

An important objective of public enterprises is to prevent the concentration of economic power and growth of private monopolies. Public sector helps the government to enforce social control on trade and industry for ensuring equitable distribution of goods and services, Public sector organisations are businesses set up with the aim of providing a public service rather than making a profit. Social enterprises are private organisations that are run along business lines, but where any profits are reinvested into the community or into social or environmental projects.

The chief characteristics of public enterprises are:

Subsidiaries remain private. They are private subsidiaries of a public company. Think about it: if a subsidiary went public, that would mean that its shares were being offered to the public, instead of all being owned by the parent company, and so it would no longer be a subsidiary.

Public enterprises are autonomous and semi autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial activities.

The government owned enterprises is called a public enterprise. It refers to any industrial or commercial undertaking which is owned and managed by central, state or local government and of which is the output is marketed. The examples are Hindustan Machine Tools (HMT), Gas Authority of India (GAIL).

UTI Mutual Fund was carved out of the erstwhile Unit Trust of India as a SEBI registered mutual fund from 1 February 2003. 

A state-owned enterprise in India is called a public sector undertaking (PSU) or a public sector enterprise. 

The Maharatna firms can now decide on investments of up to 15 per cent of their net worth in a project; the Navaratna companies could invest up to Rs 1,000 crore without explicit government approval.

A state-owned enterprise in India is called a public sector undertaking (PSU) or a public sector enterprise. These companies are owned by the union government of India, or one of the many state or territorial governments, or both. The company stock needs to be majority-owned by the government to be a PSU.

Public sector refers to government-owned organizations and government provided services. Private sector refers to organizations that are not government owned and the goods and services provided by organizations outside of the government. For example, companies owned by individuals are part of the private sector.

A company whose shares are publicly traded and are usually held by a large number (hundreds or thousands) of shareholders. The usual British term is a public limited company. A government-owned company such as an airline or public transit company. See also corporation sole. 

A state-owned enterprise in India is called a public sector undertaking (PSU) or a public sector enterprise. These companies are owned by the union government of India, or one of the many state or territorial governments, or both. The company stock needs to be majority-owned by the government to be a PSU.

 company whose shares are publicly traded and are usually held by a large number (hundreds or thousands) of shareholders. The usual British term is a public limited company. A government owned company such as an airline or publictransit company. See also corporation sole.

BRPSE
has made recommendations in respect of 31 central public sector
enterprises so far and out of them the Government has approved revival
plant of 15 cases till 30th March, 2006. Board for Reconstruction of Public Sector Enterprises was established in December 2004 as an advisory body to advise the government on the strategies, measures and schemes related to strengthening, modernizing, reviving and restructuring of public sector enterprises.