Question

explain statutary corporation? explain its two advantages and three disadvantages​

Answer 1

Answer:

Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments. ... It is a corporate person and has the capacity of acting in its own name.

Disadvantages of Statutory Corporations

(1) Difficult Formation: It is very difficult to form statutory corporations because it requires lengthy documentation, complicated formalities & passing of statue.

(2) Rigidity: The policies once approved, the statue once passed cannot be changed easily.

Explanation:

1. Expert Management: Statutory corporations are managed by directors who are very much experienced in their respective fields. This imparts professionalism in the management of the statutory corporations.

2. Autonomy in Administration: Statutory corporations enjoy autonomy in the administration of the corporation.