Saudi, public, owned, corporations, corporation, Crown, United, Stock, Authority

A government corporation or government-owned corporation is a legal entity created by a government to exercise some of the powers of the government. It may resemble a not-for-profit corporation as it has no need or goal of satisfying the shareholders with return on their investment through price increase or dividends.

In the United States, businesses that are government owned include Amtrak, Tennessee Valley Authority, and the United States Postal Service. Many states have government owned businesses for operations as well. Generally speaking, a statute passed by a legislature specifically sets up a government owned company in order to undertake a specific public purpose with public funds or public property.

In monarchical Commonwealth countries country-wide government corporations often use the style "Crown corporation". Notable exceptions include both the State-Owned Enterprises and the Crown entities in New Zealand. Examples of Crown corporations include the CBC in Canada and Air Canada before it underwent privatisation. Cabinet ministers (Ministers of the Crown) often control the shares in such public corporations.

At the level of local government, territorial or other authorities may set up government corporations such as "Local Authority Trading Enterprises" (LATEs).

In Japan, Japan Post is currently partially owned by the government, but will soon be sold to the public. JR, NTT and Japan Tobacco were formerly owned by the government.

In most OPEC countries, the governments prefer to own the oil companies operating on their soil. A notable example is the Saudi national oil company, Saudi Aramco, which the Saudi government bought in 1988 and changed its name from Arabian American Oil Company to Saudi Arabian Oil Company. Saudi government also owns and operates Saudi Arabian Airlines, and owns 70% of SABIC, as well as many other companies. They are, however, being publicized gradually.

See also