ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Indo-African Trade A Re-Assessment

 resources provided these projects are in conformity with general government policies. The company should enjoy full trust of the Government that it will keep its policies in view particularly when secretaries of the concerned Ministries are represented on its board. Similarly, self-financed diversification should also be permitted within the broad objectives of the organisation. Though this freedom has, at times, laid the Italian holding companies open to the charge of indulging in 'imprudent diversification', this flexibility alone will enable the Company to protect its profitability subject to certain broad directives. This freedom can also be used by the company to promote, more effectively, the interests of the government itself in the field of development. If the parent company has to be made responsible for performing the role of the owner in respect of subsidiary companies, it must be vested with full powers to appoint and dismiss the board of directors of the latter. There should be no government representation on these subsidiaries except those which are doing very badly. This will also help concerves managerial resources available with the government for its more effective utilisation.

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