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Discuss the merits and demerits of statutory corporations. |
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Answer» The merits of statutory corporations are: 1. It has accountability to the parliament. 2. As a public corporation has independence in administrative matters, it can take quick decisions and prompt action independently. 3. A public corporation has administrative autonomy. So, it can change its policies and practices according to the circumstances, Thus, it enjoys flexibility of operations. The demerits of public corporation are: 1. Though it has autonomy in administrative matters, in practice, it is subject to interference by the ministers, political leaders and government officials; as a result, the smooth working of the corporation is disturbed. 2. Its formation takes a long time, as it requires the passing of a special act in the parliament. 3. The board of directors of the corporation consists of persons with different interest. This disturbs the working of the corporation. |
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