explain statutary corporation? explain its two advantages and three disadvantages
Answers
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.