Question

Distinguish Between Government Company and Statutory Corporation. 

Answer 1

S. No.	Points	Government Company	Statutory Corporation
1.	Meaning	“Government company” means a company where a minimum of 51% of the paid-up capital is held by the central or state government jointly or individually.	The company that is formed under a special act of Parliament or state legislature is known as a statutory corporation.
2.	Capital	The capital is contributed by the central government, state government or even the general public.	Capital for the statutory company comes from the central or state government.
3.	Management	The government company is managed by the Board of Directors appointed by the government and shareholders.	It is managed by a board of directors nominated by the government.
4.	Control	These companies are controlled by the government or shareholders.	It is controlled by the government by the Act of Parliament or State Legislature.
5.	Establishment	Government companies are formed and registered under the provisions of the Companies Act, 2013.	It is established by passing a special act in the parliament or in the state legislature.
6.	Borrowing power	Government companies can borrow funds by way of debt or issuing shares to the public.	Statutory companies can borrow from the public by issuingshares and debentures.
7.	Flexibility	Government companies are more flexible in the operations of the business. They can change the line of business as per the market trend.	It has moderate flexibility in its operation.
8.	Autonomy	It has full autonomy, as it is incorporated under the Companies Act, 2013.	It has autonomy in decision-making.