Question

State any four features of statutory corporation.

Describe the features of a statutory corporation.

Answer 1

1. Formation: Created by a special Act of Parliament or State Legislature which defines powers and objectives.
2. Separate Legal Entity: It has a separate legal character, can possess property, enter into contracts, and sue or be sued in its own name.
3. Ownership: The government owns it entirely, and the state provides all of the capital.
4. Management: A government-appointed Board of Directors manages day-to-day operations with autonomy.
5. Service Motive: The primary goal is public service, although it is supposed to be self-sustaining or generate modest profits.
6. Public Accountability: Reports submitted to Parliament/Legislature for audit and review.