Public Private and Global Enterprises Test - 4

The formalities of formation of a company can be divided into four distinct stages, which are (i) Promotion (ii) Incorporation (iii) Subscription of capital (iv)Commencement of business.

The formalities of formation of a company can be divided into four distinct stages, which are (i) Promotion (ii) Incorporation (iii) Subscription of capital (iv)Commencement of business.

A multi National corporation (MNC) is usually a large corporation incorporated in one country which produces or sells goods or services in various countries.

Centralized control in the context of MNC's refers to the control exercised by the corporation's headquarters. In the case of MNC's the headquarters exercise (centralized) control over all its branches and subsidiaries across all the countries where the MNC has a presence.

A joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.

Statutory corporations: Statutory corporations are public enterprises brought into existence by a special act of the parliament and are governed by the provisions of the Act.

Preliminary contracts are contracts entered into by the promoters on behalf of the company before its incorporation with third parties. Such contracts are legally not binding upon the company even after it comes into existence.

Board for Industrial and Financial Reconstruction (BIFR) was set up in January, 1987 and functional with effect from 15th May 1987. The responsibility of reviving of sick public sector units lies with of the BIFR. It decides whether the sick PSU's are to be reconstructed or these should be shut down.

A “Government company” is defined under Section 2(45) of the Companies Act, 2013 as “any company in which not less than 51% of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company”.

Before commencing the incorporation of a company, the directors of the company must acquire the proposed name must be approved by the Registrar of Companies in Ministry of Corporate Affairs.

There are various types of business in private sector. Private Sector is actually business organizations that owned and run in private individuals. There are various types of business in private sector, like Sole Proprietor, Partnership, Limited Companies, Cooperatives, and Joint Hindu Family.

A private company is the one which has a minimum paid-up share capital of Rs. 100000 or such higher capital as prescribed by the Companies Act. Its Article of association mentions that the company restricts the right to transfer its shares; limits the number of its members from 2 to 50.

A private company is the one which has a minimum paid-up share capital of Rs. 100000 or such higher capital as prescribed by the Companies Act. Its Article of association mentions that the company restricts the right to transfer its shares; limits the number of its members from 2 to 50.

The Indian economy consists of both privately owned and government owned business enterprises, it is known as a mixed economy. The Government of India has opted for a mixed economy where both private and government enterprises are allowed to operate.

A state-owned enterprise in India is called a Public Sector Undertaking (PSU) or a Public Sector Enterprise (PSE). These companies are owned by the union government of India, or one of the many state or territorial governments, or both.

The different types of public sector enterprises are as follows:

1.Departmental undertakings : This is the oldest and most traditional form of organizing public enterprises. Examples of these undertakings are railways, post and telegraph department.

2.Statutory corporations : Statutory corporations are public enterprises brought into existence by a special act of the parliament.

3.Government company : A Government company is established under the Indian Company Act, 1956 and is registered and governed by the provisions of the Indian Companies Act.

A state-owned enterprise in India is called a Public Sector Undertaking (PSU) or a Public Sector Enterprise (PSE). These companies are owned by the union government of India, or one of the many state or territorial governments, or both.

Departmental undertakings : This is the oldest and most traditional form of organizing public enterprises. Examples of these undertakings are railways, post & telegraph department and Air India.

Departmental undertakings : This is the oldest and most traditional form of organizing public enterprises. Examples of these undertakings are railways, post & telegraph department and Air India.

Statutory corporations are public enterprises brought into existence by a special act of the parliament. Statutory corporations are Public enterprises.

A prospectus is a legal document issued by 

companies that are offering securities for sale.

Majority-owned foreign affiliate (MOFA). A foreign affiliate in which the combined ownership of all U.S. parents exceeds 50 percent.

At present the number of industries kept reserved for government sector is three:

They are:

1.Atomic energy,

2.Railway transport and

3.The substances specified in the schedule to the notification of the government of India in the Department of the Atomic Energy dated 15th march, 1995.

Disinvestment involves the sale of the equity shares to the private sector and the public. The objective was to raise resources and encourage wider participation of the general public and workers in the ownership of Public Sector Enterprises (PSE).

A memorandum of understanding (MOU) is a formal agreement between two or more parties. Companies and organizations can use MOUs to establish official partnerships.

The private sector encompasses all for-profit businesses that are not owned or operated by the government. This is run by private individuals or groups, usually as a means of enterprise for profit.

After having attained independence, the Government of India declared its first Industrial Policy on 6th April, 1948. The Industrial Policy 1948 was presented in the parliament by then Industry Minister Dr. Shyama Prasad Mukherjee.

Industrial Policy Resolution of 1956 (IPR 1956) is a resolution adopted by the Indian Parliament in April 1956. It was the first comprehensive statement on industrial development of India. This comprised 17 industrial areas which were strictly under the Central Government. In the 1956 resolution on industrial policy 17 industries were reserved for public sector.

The Indian economy consists of both privately owned and government owned business enterprises, it is known as a mixed economy. The Government of India has opted for a mixed economy where both private and government enterprises are allowed to operate.

it resembles closely the popular or abbreviated description of an existing company or limited liability partnership;

the proposed name is identical with or too nearly resembles the name of a company or limited liability partnership incorporated outside India and reserved by such company or limited liability partnership with the Registrar:

the proposed name includes the word “State”, the same shall be allowed only in case the company is a government company;