Question

explain the features and statitary corporation​

Answer 1

Answer:

❤️❤️A statutory corporation is a body corporate formed by a special act of parliament or by the central or state legislature. It is fully financed by the government. Its powers, objects, limitations etc. are also decided by the act of the legislature. It is also called” public corporation”.❤️❤️

Explanation:

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Answer 2

Explanation:

Statutory Corporations

Statutory corporations are body corporates formed by a special act of parliament or by the central or state legislature. It is fully financed by the government. Its powers, objects, limitations etc. are also decided by the act of the legislature. Examples include Air India, State Bank of India, Life Insurance Corporation of India etc.

Features of Statutory Corporations

The main characteristics of the statutory corporation are:

1. It is a Corporate Body

It is an artificial person created by law & is a legal entity. Such corporations are managed by the board of directors constituted by the government. A corporation has a right to enter into contracts & can undertake any kind of business under its own name.

2. Owned by State

State provides help to such corporations by subscribing to the capital fully or wholly. It is fully owned by the state.

3. Answerable to the Legislature

A statutory corporation is answerable either to parliament legislature or state assembly whosever creates it. Parliament has no right to interfere in the working of statutory corporations. It can only discuss policy matters & overall performance of corporations.

4. Own Staffing System

Employees are not government servants, even though the government owns & manages a corporation. Employees of various corporations receive balanced or uniform pay & benefits by the government. They are recruited, remunerated & governed as per the rules laid down by the corporation.

5. Financial Independence

A statutory corporation enjoys financial autonomy or independence. It is not subject to the budget, accounting & audit controls. After getting the prior permission from the government, it can even borrow money within & outside the country.