Government Joint Stock Company: Forms of State Enterprise
If the state gets the ownership on continual at any business directly or indirectly incest it that business is called as the state enterprise. The business controlled or operated by the government is known as a state enterprise.
The government company is formed and registered under the Company Act-1994. It functions like any private company. It may be owned wholly or partly by the government and management is run by a board of directors. But the shareholders normally do not enjoy the right to vote and elect their own representative. The members of the board are usually appointed by the government. Government own at least 51% share of these company.
Features of government joint Stock Company: The features of government joint stock Company are as follows.
Ownership: There are joint owners of this company both government and non- government but government owned the maximum share.
Formation: It formed and registered under the Company Act and operated and controlled by its own Memorandum of Association and Article of Association.
Autonomy: It is an autonomous institution. As per as daily activities concerned it is free from government control.
Legal entity: This organization has a separate legal entity. It is operated by its own name and scale.
Management: The management of this company given to the board of directors appointed by the government.
Capital: These organizations get a fixed amount of capital from the government. If the necessary government gives them financial help.
Public welfare: Public welfare is its main objective. But it also has commercial intention more than government departmental organization and statutory company.