Question

Statutory corporations need not follow the companies Act 1956. (State with reason whether the given statement is true or false)

Answer 1

A firm or corporation which is created by special Act which is passed either by State or Central legislature is known as statutory corporations.

They are governed by provisions of acts such as the Companies Act 1956. But they, not completely governed or need to follow them consistently.

These corporations are formed for carrying out usual public undertakings and needs powers and privileges to carry out their services.