Question

What happens to government stake when disinvestment dilutes ownership beyond 51%?

Options

• The enterprise is immediately dissolved

• A joint ownership structure is permanently maintained

• Government retains full control of the enterprise

• Ownership and management transfer to the private sector

Answer 1

Disinvestment means selling government equity to the public. When government stake falls below 51%, both ownership and management control automatically transfer to the private sector, marking a fundamental shift in corporate control.