9.4 Organisation and governance structure

9.4 ORGANISATION AND GOVERNANCE STRUCTURE

The organization and governance structure of public enterprises vary depending on factors such as their size, sector, legal framework, and government policies.

Elements and principles that can be observed in their structure:

1. Board of directors: Public enterprises often have a board of directors responsible for overseeing the organization’s operations, setting strategic direction, and ensuring accountability.
2. Chief Executive Officer (CEO) or Managing Director: The CEO or managing director is responsible for the day-to-day management and operations of the public enterprise.
3. Management team: The management team consists of senior executives who oversee different functional areas within the public enterprise.
4. Employees: Public enterprises have a workforce responsible for delivering services, producing goods, and supporting the organization’s operations. Employees can range from frontline staff to technical experts and administrators.
5. Regulatory authorities or government oversight: Depending on the sector and jurisdiction, public enterprises may be subject to regulatory authorities or government oversight agencies. These entities ensure compliance with relevant laws, regulations, and policies.
6. Shareholder or government ownership: In public enterprises, the government or relevant government agencies are often the owners or majority shareholders. As owners, the government sets the overall policy direction, appoints board members, and may have the authority to approve major decisions or investments.
7. Advisory bodies or committees: Public enterprises may establish advisory bodies or committees to provide expertise, advice, and recommendations on specific areas. These bodies could include stakeholders such as industry experts, consumer representatives, community representatives, or technical committees.