Test: Private, Public And Global Enterprises - 1

According to the Indian Companies Act. 1956, 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.

According to the Indian Companies Act. 1956, 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.

The term ‘PSEs’ stands for public sector enterprises, which are completely owned and controlled by the government. On the other hand, the other types of organisations given in the question, namely, Joint Hindu family, foreign companies and private entrepreneurs, are controlled and owned by private individuals.

Disinvestment refers to the sale of the equity shares to the private sector and the public. The objective of disinvestment is to raise funds and encourage wider participation of the general public and workers in the ownership of these enterprises.

The private sector is the part of the economy that is run by individuals and companies for profit and is not state controlled.

In the Industrial Policy Resolution 1948, the Government of India had specified the approach towards development of  the industrial sector. The roles of the private and public sector were clearly defined and the government through various Acts and Regulations was overseeing the economic activities of both the private and public sector.