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Advantages of Statutory Corporations
Posted Date: 26 Aug 2010 |Updated: 26-Aug-2010 |Category: Education |Author: Mohammed Julfekar Haider |Member Level: Gold |Points: 10 |
This post gives information about the advantages or the merits of statutory corporations.
The advantages of statutory corporations are as follows:-
(1)Formation: Formation of Statutory Corporations is easy. It can be easily formed by passing Special Act, either at Legislature Assembly or at Parliament.
(2) Autonomy: Statutory corporations can have its own working pattern. There is no political interference in day to day working of corporation.
(3) Flexibility: Statutory corporations enjoy full flexibility in its operations. It is free to take any decision relating to capital collection. Investment, market, production, recruitment, planning, accounting & the decision once taken can be easily changed.
(4)Capital Raising: Government contributes the capital at large for statutory corporations, but statutory corporations are free to collect capital from general public.
(5) Quick Decisions: Quick decisions are possible because all policy decisions are taken by the Board & board can implement these decisions easily. There is no interference of government in any type of decisions.
(6) Staff Members: Statutory corporations is free to have its own recruitment policy. It can recruit, promote, and transfer any employee / officer as per its requirement.
(7) Economies of Scale: Statutory corporations operates on large scale & enjoy the economies of large scale operations.