what are the merits of statutory corporations?
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⚫️This form of organisation enjoys certain advantages in its working. which are as follows:
(i) They enjoy independence in their functioning and a high degree of operational ilexibiiity. They are free from undesirable government regulation and control;
(ii) Since the funds of these organinations do not come from the central budget, the government generally does not interfere in their financial matters, including their income and receipts;
(iii) Since they are autonomous organisations they frame their own policies and procedures within the powers assigned to them by the Act. The Act may, however, provide few issues/matters which require prior approval 'of a particular ministry;
(iv) A statutory corporation is a valuable instrument for economic development. It has the power of the government, combined with the initiative of private enterprises.
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Hey mate.......
Following are the merits of Statutory Corporation:-----
(1)Formation: Formation of Statutory Corporations is easy. It can be easily formed by passing Special Act, either at Legislature Assembly or at Parliament.
(2) Autonomy: Statutory corporations can have its own working pattern. There is no political interference in day to day working of corporation.
(3) Flexibility: Statutory corporations enjoy full flexibility in its operations. It is free to take any decision relating to capital collection. Investment, market, production, recruitment, planning, accounting & the decision once taken can be easily changed.
(4)Capital Raising: Government contributes the capital at large for statutory corporations, but statutory corporations are free to collect capital from general public.
(5) Quick Decisions: Quick decisions are possible because all policy decisions are taken by the Board & board can implement these decisions easily. There is no interference of government in any type of decisions.
(6) Staff Members: Statutory corporations is free to have its own recruitment policy. It can recruit, promote, and transfer any employee / officer as per its requirement.
(7) Economies of Scale: Statutory corporations operates on large scale & enjoy the economies of large scale operations.
(8) Separate Entity: Like joint stock company, statutory corporations enjoys separate legal status.
(9) Self Accounting System: Statutory corporations is free to have its own accounting pattern. It need not follow Budgetary Accounting & Audit Control of government. It is free to prepare its own budget.
(10) Social Welfare: The main object of statutory corporations is to provide necessary services at a lower price. It works for protecting the interest of common people. Hence society at large is benefited.
HOPE IT HELPS ☺
Following are the merits of Statutory Corporation:-----
(1)Formation: Formation of Statutory Corporations is easy. It can be easily formed by passing Special Act, either at Legislature Assembly or at Parliament.
(2) Autonomy: Statutory corporations can have its own working pattern. There is no political interference in day to day working of corporation.
(3) Flexibility: Statutory corporations enjoy full flexibility in its operations. It is free to take any decision relating to capital collection. Investment, market, production, recruitment, planning, accounting & the decision once taken can be easily changed.
(4)Capital Raising: Government contributes the capital at large for statutory corporations, but statutory corporations are free to collect capital from general public.
(5) Quick Decisions: Quick decisions are possible because all policy decisions are taken by the Board & board can implement these decisions easily. There is no interference of government in any type of decisions.
(6) Staff Members: Statutory corporations is free to have its own recruitment policy. It can recruit, promote, and transfer any employee / officer as per its requirement.
(7) Economies of Scale: Statutory corporations operates on large scale & enjoy the economies of large scale operations.
(8) Separate Entity: Like joint stock company, statutory corporations enjoys separate legal status.
(9) Self Accounting System: Statutory corporations is free to have its own accounting pattern. It need not follow Budgetary Accounting & Audit Control of government. It is free to prepare its own budget.
(10) Social Welfare: The main object of statutory corporations is to provide necessary services at a lower price. It works for protecting the interest of common people. Hence society at large is benefited.
HOPE IT HELPS ☺
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