Explain any five ways in which nationalised industries differ from public limited companies.

Nationalised industries (public corporations owned by the State) differ from public limited companies (privately owned joint-stock companies) in the following ways:

1. Ownership: A nationalised industry is owned by the government on behalf of the whole nation, while a public limited company is owned by private individual shareholders who have bought its shares.
2. Source of capital: A nationalised industry obtains its capital mainly from government funds, grants and loans, whereas a public limited company raises its capital by selling shares and debentures to the public.
3. Aim or motive: A nationalised industry is set up primarily to provide essential services to the public, not mainly to make profit, while a public limited company is established mainly to maximise profit for its shareholders.
4. Formation: A nationalised industry is created by a special Act of Parliament (a statute), while a public limited company is formed by registration under the Companies Act.
5. Control and management: A nationalised industry is controlled by a board appointed by the government and is answerable to a minister and to Parliament, whereas a public limited company is managed by a board of directors elected by the shareholders at the annual general meeting.
6. Distribution of profit: Any surplus made by a nationalised industry belongs to the government and may be used for public purposes, while the profit of a public limited company is shared among shareholders as dividends.