Question

State any four features of Statutory Corporation​

Answer 1

Explanation:

Four features of statutory corporation are as follow

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.