Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 9 Government Organisation Notes

→ Public enterprise, as a form of business organization gained economic importance in most of the countries of the world in recent years.

→ Department form of organisation of managing state enterprises is the oldest form of organisation.

→ A departmental undertaking is established either as a separate full-fledged ministry or as a sub-division of a ministry (i.e. department) of the Government.

→ Strategic industries like defence and atomic power cannot be better managed other than government departments.

→ Government can promote economic and social justice through departmental undertakings.

→ Civil Servants are given control of these undertakings who may not have business outlook or commercial experience.

→ There is an excessive government interference and control in department organisation.

→ A public corporation is that form of public enterprise which is created as an autonomous unit, by a special Act of the Parliament or the State Legislature . ‘ ,

→ The Statute defines the obj ectives, powers and functions of the public corporation.

→ A public corporation is created by a special Act of the Parliament or the State Legislature.

→ The main objective of a public corporation is service-motive; though it is expected to the self-supporting and earn reasonable profits.

→ A public corporation enjoys internal operational autonomy; as it is free from Governmental control.

→ A public corporation follows a reasonable pricing policy, based on cost-benefit analysis.

→ Autonomy and flexibility advantages of a public corporation exist only in theory.

→ Quite often civil servants, who do not possess management knowledge and. skills, are appointed by the government on the Board of Directors, of a public corporation.

→ In the Board of Directors of public corporation, conflicts may arise among representatives of
different groups.

→ 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”.

→ A Government company is created by an executive decision of the Government, without seeking the approval of the Parliament or the State Legislature.

→ The Annual Report of a Government company is presented to the Parliament/State Legislature.

Samacheer Kalvi 11th Commerce Notes