What are the limitations of a statutory corporation?

What are the limitations of a statutory corporation?

Disadvantages of Statutory Corporations

• (1) Difficult Formation: It is very difficult to form statutory corporations because it requires lengthy documentation, complicated formalities & passing of statue.
• (2) Rigidity: The policies once approved, the statue once passed cannot be changed easily.

What are the advantages and disadvantages of statutory corporation?

Merits of Statutory Corporations

• Initiative & flexibility: Operations & management of a statutory corporation is done independently, without any government’s interference, with its own initiative & flexibility.
• Administrative autonomy: A public corporation is able to manage its affairs with independence & flexibility.

Which is a statutory corporation?

Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. This is a body corporate created by the legislature with defined powers and functions and is financially independent with a clear control over a specified area or a particular type of commercial activity.

What are the examples of statutory corporation?

Here is a list of some public corporation statutory organisations in India:

• Life Insurance Corporation (LIC)
• Reserve Bank of India (RBI)
• Air India Corporation.
• Food Corporation of India (FCI)
• State Bank of India (SBI)
• Central Warehousing Corporation (CWC)
• Oil and Natural Gas Commission (ONGC)

How can public corporations be controlled?

Control of Public Corporations

1. Judicial Control or Court Order: The court can declare an act made by a corporation illegal or unconstitutional.
2. Auditing:
3. Approval of Loans and Expenditure:
4. Acts of Parliament:
5. Issuing of Directives:
6. Ministerial Control:
7. Abolition of Unproductive Corporations:
8. Summoning of Officials:

Who is the head of statutory corporation?

1. Corporate Body: Statutory corporations are corporate bodies. They are artificial persons which are created by the law and are regarded as a legal entity. These corporations are managed by a board of directors who are appointed by the Government.

How can public enterprises be improved?

There should be focus on improving efficiency in all functional areas. Policies, systems and procedures should be modified with the aim of making the enterprise flexible, efficient and profitable. 3. Autonomy: Public enterprises should have considerable autonomy in their functioning.

What are the features of public corporation?

List of Main features of a public corporation.

• Owned by the state.
• Created by a special Act of legislature.
• It is a corporate body.
• Management by Board of Directors.
• Relation with the government.
• Answerable to legislature.
• Own staffing system.
• Financial independence.

What are the types of public corporation?

There are two main types of public corporations:

• Those providing essential services like water corporations, Power Holding Company of Nigeria, Federal Housing Authority and Nigeria Ports Plc.
• Those of commercial nature like state owned banks, hotels, textile mills, insurance companies and transport services.

What are 3 types of corporations?

In the United States, there are three types of corporations.

• C corporation (C corp)
• S corporation (S corp)
• Limited liability company (LLC)

What are the functions of a public corporation?

A Public Corporation is an entity that has been established by an Act of Parliament with the sole aim of providing services to the public at a reasonably priced rate. Some of these services include, but is not limited to, water, electricity, postal and telecommunication, public broadcast.

Why do we need public corporations?

Advantages of a Public Corporation Economies of scale. Easier planning and coordination. Autonomous set-up. Protection of public interest.

What are the reason for establishing public corporation?

To create an essential industry The creation of a Public Corporation is to establish industries in areas of the economy which the government deems necessary or very crucial but which investors may not be willing to invest in because of the huge capital that is required.

What is the difference between Public Corporation and civil service?

The civil service is managed by a minister, advised by the Director General (Permanent Secretary) while public corporation is managed by members of the board of directors. 2. While the civil service performes administrative functions, the public corporation provides social services and amenities to the general public.

What is difference between public servant and government servant?

Civil Servant is an official or a bureaucrat representing the government and who works in an office or a department. Public Servant is a social worker who is elected or appointed and sometimes works in an office and represent the government.

Is a teacher a civil servant?

Who exactly are civil servants? In this way, civil servants are defined much more narrowly than public sector workers; police, teachers, NHS staff, members of the armed forces or local government officers are not counted as civil servants.

What are the features of civil service?

Characteristics of the Civil Service

• Permanency: The civil service is a permanent government establishment and employees enjoy security of tenure.
• Neutrality:
• Impartiality:
• Anonymity:
• Expertise:
• Bureaucracy:
• Merit System: