They are those entities that belong totally or partially to the Government of a given State and where it can have participation in the decision-making of the company. The objective of them like any other company is to obtain monetary gains but above all that, the primary objective is to satisfy the needs of the population through the services it offers (electricity, water, telephony, among others).
Public companies are created through presidential decrees to carry out various activities, these are financed mainly by the State and by the profits that they obtain from the exploitation of a product. The results obtained by these companies are not going to be measured by the amount of money earned, but by the quality of the service that is being provided.
These types of companies are under the laws of public function, therefore the employees of said companies must be governed by what the law for the public company establishes. These are subject to fiscal controls carried out by the competent bodies (comptrollers) created for this purpose, they verify that the money from public funds is destined to the most urgent requirements of the population, that is, the comptrollers ensure good performance. of public companies.
The main objective of the public company is to seek the common good of the community in general, which is why production costs go into the background if the service to be offered is of high quality, unlike the private company whose primary objective is the growth of earnings and expansion in the different markets of the economy.
There is the case of private companies that become public, this is because on some occasions governments make the decision to nationalize said company, or on the contrary, it is the private sector that buys the shares of the company in order to privatize it. It should be noted that for a company to cease to be considered public, the State must own less than half of the shares, otherwise it will remain in command of decision-making.
