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What is the difference between a State-Owned Enterprise and a State-holding enterprise?

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What is the difference between a State-Owned Enterprise and a State-holding enterprise?

Posted On May 2014

The primary difference between a State-Owned Enterprise (SOE) and a state-holding enterprise lies in the level of government ownership. By strict definition, an SOE is entirely owned (100%) by the state.

In contrast, a state-holding enterprise is one where the government is the majority shareholder (owning over 50%) but shares ownership with other parties. However, it is important to note that the term "SOE" is sometimes used more loosely to refer to any company where the state holds a controlling interest, such as the power to appoint most directors, even without majority equity.

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