Question

The government established a corporation under a special act to provide insurance services. This corporation has its own legal identity and operates with a service motive. However, its operations are periodically reviewed by Parliament to ensure public accountability. What is the role of Parliament in such organizations?

Options

• To oversee the day-to-day operations

• To ensure financial accountability and transparency

• To make management decisions

• To hire staff

Answer 1

To ensure financial accountability and transparency

Explanation:

A Statutory Corporation is a public-sector enterprise established by a special act of Parliament or State Legislature that is entirely owned by the government. The state contributes all of the equity capital in a statutory corporation.