how is a government company different from a public company
Dear Student,
A Government company is a company in which atleast 51% of the stake is held by central government or state government. ONGC and SAIL are two example of government company. These companies are managed and owned by the government for the social welfare. Employees of a government company are regarded as government employees.
A public company is a company which can be started with seven members atleast and there is no restriction in maximum number of members. A public limited company invites general public to subscribe to its shares and debentures and the shares of a public limited company are transferable. Examples, BHEL, Air India, Indian Oil Corporation, etc. Profit making and shareholder's gain is the main goal of public limited company. Employees of public limited company is not regarded as government employees.
A Government company is a company in which atleast 51% of the stake is held by central government or state government. ONGC and SAIL are two example of government company. These companies are managed and owned by the government for the social welfare. Employees of a government company are regarded as government employees.
A public company is a company which can be started with seven members atleast and there is no restriction in maximum number of members. A public limited company invites general public to subscribe to its shares and debentures and the shares of a public limited company are transferable. Examples, BHEL, Air India, Indian Oil Corporation, etc. Profit making and shareholder's gain is the main goal of public limited company. Employees of public limited company is not regarded as government employees.