Describe the various types of enterprises owned and controlled by the state

Major Forms of State Enterprises

The following are the major forms of enterprises which are owned and managed by the state:

1. Municipal Corporation or District Council.
2. Department Organization.
3. Government Joint Stock Company.
4. Statutory Corporation.
5. Special Organization.

1. Municipal Corporation or District Council:-
Public utility concerns are generally operated by local authority i.e. Municipality or District Council. Its management is conducted by paid officers and activities are supervised by the elected members. These corporations are empowered to impose certain types of taxes, in order to pay its heavy expenditures.

2. Department Organization:-
Government enterprises are organized separately to its nature of function. such as railways irrigation telephone and telegraph departments. These regarded as government employees. Their activities are surprised by the concerned secretariat. These departments performs valuable services for achieving the social and economic objects of the state.

3. Government Joint Stock Company:-
Government joint stock company registered under the Companies ordinance (Govt. Companies Provisions). It is found for the accomplishment of specific business and commercial objectives. It majority of share are controlled over by the govt. Management is conducted by the Board of Directors whose chairman and members are nominated by the government. This form of state enterprises is from rigid financial rules and possess features of flexibility, adaptability and autonomy.

4. Statutory Corporation:-
Such corporations are formed under the special act of legislature or parliament or by the order of the head of state. In our country State Bank of India are created by the special law of the government. Its monopolists powers are laid down in the special act of the legislature under which is formed. It is managed by the Board of the Directors Who are appointed by the government for the specific period. It is corporate body which is free from government intervention.

5. Special Organization:-
Some time govt. arranged special board of committee for the particular type of business operating contacts and control board are quite and suitable for defense services and river valley projects respectively. Government determines the rights and power of the member of such organization at the time of its formation.