Objectives or Reasons for Statutory Corporation
The corporation which is created by the Act to serve some special purposes is called statutory Corporation. Statutory Corporation is created with the purpose of rendering commercial welfare such as producing some special product and marketing and rendering public welfare by development of health education, research etc. the main purpose of statutory corporation and the reasons of establishing these corporations are discussed below –
To control currency and banking systems: To keep control over the currency and banking in every country some financial organizations are established in government ownership Bangladesh Bank, Sonali Bank, Krishi Bank are some of the examples.
To ensure public welfare: The main objective of the statutory corporation is ensuring public welfare. A government can directly operate the public welfare organizations like WASA, DESA, and other educational institutions are operating as the statutory corporation like Bangla Academy, Bangladesh Shilpakala Academy etc. Social, cultural, and commercial organizations as the statutory corporation for the development of socio-economic conditions of the country.
To establish defense industry: To protect the country from external enemies, defense industries are established under government ownership. A government can control and operate the business so that enemies don’t get weapons in their hand.
To operate large-scale indoors and service: Private organizations are not interested in establishing large-scale industry and service organization because of a shortage of capital, delay in getting profit etc. So government establishes statutory corporation for the betterment of these large-scale industry and set vice sectors.
To resist monopoly business: With a view to reducing the autocracy of a private organization and stop monopoly business of them, the government establishes the statutory corporation beside private organizations.
To maintain a balanced distribution of national wealth: These companions are established so that country’s wealth doesn’t get accumulated to some selfish persons. As a result, balanced distribution of national wealth possible and the profit can be spending for the general public.
To protect consumers’ interest: Private owners are trying to satisfy their own interest and for this reasons, they create an artificial shortage of products in the market and supply low-quality products in the market. As a result, consumers are suffering many ways. So to control product quality and maintain the stability of product price government establish a statutory corporation.
To increase employment opportunity: For increasing employment opportunity and decrease unemployment problem government establishes the statutory corporations.
To utilize natural resources properly: To make sure proper presentation and utilization of mineral, forest, wild etc. resources are also a purpose of forming a statutory corporation. For example, Petrobangla, Titas gas etc.
To conduct research and development based organization: Government establishes many organizations as a statutory corporation for conducting research in industry, culture science technology and finance can be done independently without any influence of others Government has established Bangla Academy, Shilpakala Academy. Bangladesh Poromanu Shakti Commission etc. as a statutory corporation and giving them the chance to conduct research activities without any government influence.
After above discussion, we can see that statutory corporations are formed and operated for very noble reasons. These corporations will be more effective, if it can be operated honestly, cordially and efficiently. These organizations are often criticized because of the inefficient management of the state.