Brieflt explain the features of statutory corporation.
Brieflt explain the features of statutory corporation.
Characteristics of statutory corporations : According to the Administrative Reform Commission, the following are the characteristic of a statutory corporation.
(i) Ownership : It is owned by the state.
(ii) Formation : It is created by or pursuant to, a special law, defining its powers, functions, privileges, form of management and its relationship with government departments.
(iii) Separate legal entity : It is a corporate body and can sue and be sued, enter into contract and acquire property in its own name.
(iv) Funding : It is usually independently financed. It obtains funds by borrowing either from the government or in some cases, from the public and through revenues derived from the sale of goods and services and has the authority to use and reuse its revenue.
(v) Public accountability : It is ordinarily not subject to the budget, accounting and audit laws and procedure that it applicable to government departments.
Characteristics of statutory corporations : According to the Administrative Reform Commission, the following are the characteristic of a statutory corporation.
(i) Ownership : It is owned by the state.
(ii) Formation : It is created by or pursuant to, a special law, defining its powers, functions, privileges, form of management and its relationship with government departments.
(iii) Separate legal entity : It is a corporate body and can sue and be sued, enter into contract and acquire property in its own name.
(iv) Funding : It is usually independently financed. It obtains funds by borrowing either from the government or in some cases, from the public and through revenues derived from the sale of goods and services and has the authority to use and reuse its revenue.
(v) Public accountability : It is ordinarily not subject to the budget, accounting and audit laws and procedure that it applicable to government departments.
