QS Study

Functions of Statutory Corporation

Statutory Corporation is formed under special Act passed in parliament or by the permission of president for commercial and non-commercial various purposes. The purpose and limitation of activities depend upon the act under which the corporation is formed. Generally, the statutory corporation is established and operated for the development of public welfare, industrialization, commerce, agricultural, educational, Cultural etc. The general functions of statutory corporation are stated below-

Determination of goal and preparing plan: Statutory Corporation determines the goal for a definite term to fulfill thee purposes. And prepare a plan to achieve the goal.

Supply of information: It supply information in determining policy and preparing a plan to the government ministry. Corporation gives them necessary information, data, advice. For this government can prepare an effective plan.

Employment of employees: Statutory corporations are big in nature. Nourishing employees from different sources as government appointing, rules are also the functions of the statutory corporation.

Training function: Statutory corporations arrange training for the appointed employees to enhance their abilities and skills. For these many statutory corporations operate training center Sonali Bank training institute is the example.

Supervisory and controlling function: If a statutory corporation is the controlling sector of various industrial and commercial units then it supervises and controls the commercial organization which is the supervision of these corporations.

Coordinating function: It coordinates between governments authorized ministries activities and purpose of organizations activities. And make sure the development of public welfare programs.

Public welfare: Statutory corporations are created for achieving commercial and non-commercial goals related to public welfare. That’s why by producing demanded products and distributing those at fair price statutory corporation make sure public welfare.

Increasing national income: Statutory Corporation increases the rational income by using natural resources and manpower.

Maintaining communication: Statutory Corporation is a state enterprise. These corporations are related to producing products and services and distributing them for economic development and public welfare and to fulfill these activities statuary corporations have to maintain communication with foreign and county’s commercial and non-commercial organizations.

Determining organizational structure: They are created under special act and ordinance to grin some certain purposes. According to law, the statutory corporation makes organizational structure to gain own purposes.

At last, it can be said the statutory corporation is formed to fulfill various purposes so the nature of activities, scope are also different. But every statutory corporation has to do these activities to achieve the goals of the organization.