Question

Long answer questions.

What is Statutory Corporation ? Explain its features.

Answer 1

Statutory corporations are companies formed by passing a special Act of Parliament having special powers of the government. It is a corporate body brought into existence by the legislature. Statutory corporations have a separate legal entity with defined powers and functions.
Features of statutory corporations:

i. Set by Act of Parliament- These corporations are set up under an Act of Parliament with the objectives and powers as defined by the Act.

ii. Owned by state- They are wholly owned by the state, with ultimate financial responsibility (both profit and loss) on the government.

iii. Independent financing- They are independently financed; therefore, they can either borrow from the government or raise funds from the general public as per their discretion.

iv. No government intervention- The employees of these corporations are not governed by any rules or regulations of the government. Also, there is no intervention in the daily workings of these corporations.

v. Separate independent bodies- These corporations are independent corporate bodies; they can be sued by others as well as can sue others and can enter into legal contracts in their own names.