Saved Bookmarks
| 1. |
What is the suitability of statutory corporation ? |
| Answer» A statutory corporation is a corporation created by statute. Their precise nature varies by jurisdiction thus they might be ordinary companies/corporations owned by a government with or without other shareholders, or they might be a body without shareholders which is controlled by national or sub-national government to the (in some cases minimal) extent provided for in the creating legislation.Statutory corporation are public enterprises brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments.This is a corporate body created by the legislature with defined powers and functions and is financially independent with a clear control over a specified area or a particular type of commercial activity. It is a [corporate personhood|corporate person] and has the capacity of acting in its own name. Statutory corporations therefore have the power of the government and considerable amount of operating flexibility of private enterprises. Few are\tAirports Authority of India\tDamodar Valley corporation\tNational Highways Authority of India\tCentral Warehousing Corporation\xa0\tInland Waterways Authority of India\xa0\tFood Corporation of India\xa0\tNational Human Rights CommissionFeatures:\tGenerally financed by the central or state government.\tMay borrow funds from the public and govt. organisation through statutory sources.\tthey have separate legal entity.\tthey have to frame their own policies & procedures within the scope of state legislature.\tproviding better services to public & make adequate profit.\tthey are autonomous in their functioning thus they enjoy operation flexibility.\tthey can recruit & appoint their employee with their service condition, since they are corporate body.\tthey have to follow the special statute strictly.\tthere is less government interference in matters of the corporation.\tthere is limited liability of the members of the corporation | |