Practicing Success
Practicing Success
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What is the consequence of dilution of government ownership beyond 51 percent in a public enterprise? |
No significant impact on ownership and management Results in dilution of stake but not transfer of ownership Results in transfer of ownership and management to the private sector Maintains government control regardless of the dilution |
Results in transfer of ownership and management to the private sector |
The term disinvestment means the transfer in public sector enterprises to the private sector. It results in dilution of the stake of the Government in the public enterprise. If there is dilution of Government ownership beyond 51 percent, it would result in the transfer of ownership and management of the enterprise to the private sector. |
