In which way can a government company be converted into a private company?
Answer & explanation
Correct answer: option 3
The correct answer is Option 3: Both 1 and 2
A government company can be converted into a private company through:
-
Withdrawal of the government from ownership and management of public sector companies: This involves reducing or eliminating the government’s stake in the company and transferring ownership to private entities.
-
Outright sale of public sector companies: This involves selling the government’s shares in the company to private investors, effectively privatizing the company.
Both methods result in the government no longer holding ownership or control over the company, thereby converting it into a private entity.