A holding company may be public or private depending upon wishes of the

A holding company may be public or private depending

This preview shows page 69 - 71 out of 146 pages.

A holding company may be public or private depending upon wishes of the promoters or shareholders. In Kenya a good example of a holding company is ICDC. 4.3 Public Corporations This is the net price to which the government has stakes in The government owns a certain percentage of the enterprises shares. Where a government has a fall ownership of the corporation, the business enterprise is known as a parastatal Some public corporations are profit seeking while other are not. examples of such public corporations include; o Kenya pipeline o Kenya airways o KCB (Kenya commercial Bank) o Kenya lighting company (KPLC) Parastatals are run to provide the essential services such as education, medical etc. Similarities between public cooperation’s and joint stock companies. They are both legal entities They are governed by a board of directors appointed They are self financing. Public corporations 1. A cooperation is wholly and partially owned by the government 2. Corporations tend to be monopolists 3. Are operated on public interest not entirely on profit motive. 4. They are paid for by the public from the taxes collected by the government. 69
Joint stock companies 1. Owned by the public and has shareholders. 2. They are subjected to companies 3. Purely operate on a profit motive. 4. Private funds finance joint stock companies. Parastatal Bodies A parastatal body is an organization distinguished from a body government but in which the government is a sole owner. They are established by the government to perform specific functions and their management is in the hands of board of directors. The board of directors is appointed by the government and the parastatals bodies do not sell shares since they are whole financed by the government. Examples Marketing boards Coffee board of Kenya e.t.c. Marketing Boards These are produce organizations set up to encourage and control of the Agricultural produce. Their objective is to protect producers and consumers and may be formed by both producers coming together or be constituted by the government. Classification of Marketing Boards 1. commodity marketing boards- these are producer organizations with objectives are restricted to purchasing and selling of commodities e.g coffee, tea, pyrethrum 2. producer marketing boards- this is a produce organization dealing with a wide range of products e,g maize, wheat e.t.c 3. Expert marketing boards- this concentrate on marking one or more products overseas e.g KTDA or coffee board. Functions of Marketing Boards. 1. To encourage and control the marketing of Agricultural produce through purchasing at fixed prices to facilitate stable incomes 2. To encourage income and price stability through the buffer stock in buffer funding system.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture