Distinguish between the following.

Statutory corporation and Government company

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Solution

Basis of Difference Statutory Corporation Government Company

Formation Formed by a special Act of Parliament Formed as per the Indian Companies Act, 1956

Ownership Wholly owned by the state At least 51% shares are owned by the central or state governments

Capital financing May borrow from the government or general public May borrow from the government, private shareholders or general public

Suitability Suitable for large scale projects. Suitable for manufacturing and marketing activities.

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Basis of Difference	Statutory Corporation	Government Company
Formation	Formed by a special Act of Parliament	Formed as per the Indian Companies Act, 1956
Ownership	Wholly owned by the state	At least 51% shares are owned by the central or state governments
Capital financing	May borrow from the government or general public	May borrow from the government, private shareholders or general public
Suitability	Suitable for large scale projects.	Suitable for manufacturing and marketing activities.