New Delhi, Jan. 29 -- In a push to restart disinvestment in government companies through offer for sale (OFS), the Economic Survey 2025-26 has made a strong case for amending the Companies Act to allow entities to retain government company character even with a minimum 26% ownership.
At present, state-run companies should have a minimum 51% government shareholding. Any fall in ownership below this level changes a company's categorization to private.
"Since effective control requires only about a 26% stake, the government could consider amending the definition of "government company" under the Companies Act, limited to listed entities, to allow them to remain as government companies with a minimum of 26% ownership, thereby retaining spec...
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