Crown Corporation

Definition of 'Crown Corporation'


Any corporation that is established and regulated by a country's state or government. This is the opposite of private companies, which are privately owned, structured and operated to serve the owners of the company. A crown company is commercially owned by the government. Civil servants partially control and operate this type of company, which is meant to serve the public interest as determined by the current government.

Investopedia explains 'Crown Corporation'


Crown corporations could either be a federal corporation, owned by the government to serve a federal or national interest, or a provincial/territorial corporation, which is meant to serve a provincial or regional interest. They are more common in Commonwealth countries such as Canada, New Zealand and Australia. These companies are created by the government and can be entirely or partially owned by the public sector.

Also referred to as government owned, state-owned enterprises, crown entities, or government business enterprise (GBE).



comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better.
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.
Trading Center