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Questions
State any four features of statutory corporation.
Describe the features of a statutory corporation.
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Solution
- Formation: Created by a special Act of Parliament or State Legislature which defines powers and objectives.
- Separate Legal Entity: It has a separate legal character, can possess property, enter into contracts, and sue or be sued in its own name.
- Ownership: The government owns it entirely, and the state provides all of the capital.
- Management: A government-appointed Board of Directors manages day-to-day operations with autonomy.
- Service Motive: The primary goal is public service, although it is supposed to be self-sustaining or generate modest profits.
- Public Accountability: Reports submitted to Parliament/Legislature for audit and review.
Notes
Students should refer to the answer according to their question.
RELATED QUESTIONS
A statutory corporation is answerable to ______ Or state assembly whosoever creates it.
Give one word/phrase/term.
An autonomous corporate body created by the Special Act of the parliament or state legislature with defined powers, functions, and duties.
Give one word/phrase/term.
An organisation which 1s not subject to the budget, accounting and audit controls by the government.
Complete the sentence.
A ___________ has defined powers, functions and duties.
Answer in one sentence.
What is Statutory Corporation?
Correct the underlined word and rewrite the following sentence.
Statutory Corporation is a natural person created by special Acts.
Correct the underlined word and rewrite the following sentence.
A Statutory Corporation is not answerable to parliament or state assembly.
Study the following case/situation and express your opinion.
A central government passes a statute in the parliament and forms a business organisation which is having autonomy in administration and this organisation is answerable to the legislature.
- Which type of organisation is this?
- Give any three Features of this organisation.
- Give anyone an example of this type of organisation.
Distinguish Between Government Company and Statutory Corporation.
Justify the following statement.
There is no political interference in statutory corporations.
Attempt the following.
Demerits of Statutory Corporation.
Which of the following is a major advantage of statutory corporations in India?
Statutory corporations are accountable to which entity?
Why can statutory corporations easily raise capital for their operations?
