Consider the following statements:

1. A golden share is a type of share that gives its shareholder veto power over changes to the company’s charter.

2. Strategic disinvestment is transferring the ownership and control of a public sector entity to some other entity.

Which of the statements given above is/are correct?

• A golden share is a type of share that gives its shareholder veto power over changes to the company’s charter. It holds special voting rights, giving its holder the ability to block another shareholder from taking more than a ratio of ordinary shares.

• Strategic disinvestment is transferring the ownership and control of a public sector entity to some other entity (mostly to a private sector entity). Unlike simple disinvestment, strategic sale implies some sort of privatization.

• The Disinvestment Commission defines strategic sale:

• “Strategic disinvestment would imply the sale of substantial portion of the Government shareholding of a central public sector enterprise (CPSE) of upto 50%, or such higher percentage as the competent authority may determine, along with transfer of management control.”