The company which is created under an Actor piece of legislation passed by
chementer State Legiature is called
Answers
Answer:
A Statutory Corporation is formed by passing a Special Act of Parliament or State Legislature. Example: Airports Authority of India. Following are the features of such an enterprise:
It is formed by a special Act by the parliament or state legislature which defines its power and functions.
It has a separate legal entity.
The Board of Directors are nominated or appointed by the Government.
Capital is either borrowed from the government or the public.
Free from Government Accounting and Audit Control.
Autonomy in framing policies within the limits of the state legislature.
Ease of operations and quick decisions can be taken due to less interference of government.
Provides better services than governmental organisations which in turn helps in increasing profit for the corporation.