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SURAJIT (Student)     25 May 2013

Meaning of psu

Dear Sirs

1. I want to know the difference between a state govt PSU and an organisation promoted by govt.?

2. whether job benefits are similar in both the cases or not ?



Learning

 5 Replies


(Guest)

@Querist,

 

1.The game is of share.In a PSU,the share of government must be more than 50%.

 

2.A private organization supported by government must hold more than 50% of the total share.

 

3.Benefits depends upon the organization in particular.

 

Note-This reply should be taken as per the declaration given in my profile page.

 

Thanks,

Regards,

SURAJIT (Student)     25 May 2013

Dear Sir 

1st point is clear but can you  Pls expalin point No 2 


(Guest)

@Querist,

 

Following are the grounds based on which benefit should be counted-

 

1.Salary

 

2.Social Status

 

3.Job Security

 

4.Future Prospect

 

5.Retirement benefits(Almost same in both type of organization because of dropping the provision of Pension).

 

6.Stability of organization(Remember Walmart in USA and Satyam in India)

 

7.Ethics

 

8.Standard

 

9.Working Environment

 

10.Team work skills

 

Hope you got the point.

 

Note-This reply should be taken as per the declaration given in my profile page.

 

Thanks,

Regards,

SURAJIT (Student)     25 May 2013

Sir 

Pls elaborate 2.A private organization supported by government must hold more than 50% of the total share.     


(Guest)

@Querist,

 

It's obvious that whose share exceed 50%,the organization counts of that nature.

 

suppose X is a company.

 

Now if X holds some shares,then two possibilities arises thereof-

 

1.If government hold more than 50% of the total share at minimum and 100% at maximum,it's government company.

 

2.If X holds more than 50% of the total share privately and government share is either 49% at maximum and 0% at minimum,it's called a Private company or Private company with government aid as per the case of share percentage.

 

Besides that following are the differences between a public company and a purely private company-

 

1. Minimum number of members

The minimum number of person required to form a public company is seven, whereas in a private company their number is only two.

2. Maximum number of members

There is no limit on the maximum number of member of a public company, but a private company cannot have more than fifty members excluding past and present employees.

3. Commencement of Business

A private company can commence its business as soon as it is incorporated. But a public company shall not commence its business immediately unless it has been granted the certificate of commencement of business.

4. Invitation to public

A public company by issuing a prospectus may invite public to subscribe to its shares whereas a private company cannot extend such invitation to the public.

5. Transferability of shares

There is no restriction on the transfer of share In the case of public company whereas a private company by its articles must restrict the right of members to transfer the share.

6. Number of Directors

A public company must have at least three directors whereas a private company may have two directors.

7. Statutory Meeting

A public company must hold a statutory meeting and file with the register a statutory report. But in a private company there are no such obligations.

8. Restrictions on the appointment of Directors

A director of a public company shall file with the register a consent to act as such. He shall sign the memorandum and enter into a contact for qualification shares. He cannot vote or take part in the discussion on a contract in which he is interested. Two-thirds of the directors of a public company must retire by rotation. These restrictions do not apply to a private company.

9. Managerial Remuneration

Total managerial remuneration in the case of public company cannot exceed 11% of net profits, but in the case of inadequacy of profit a minimum of Rs. 50, 000 can be paid. These restrictions do not apply to a private company.

10. Further Issue of Capital

A public company proposing further issue of shares must offer them to the existing members. A private company is free to allot new issue to outsiders.

11. Name

A private company has to use words ‘private limited’ at the end of its name. But a public company has to use only the word ‘Limited’ at the end of its name.

 

Note-This reply should be taken as per the declaration given in my profile page.

 

Thanks,

Regards,

 

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