Statutory Corporation Forms of State Enterprise
If the state gets the ownership on continual at any business directly or indirectly incest it that business is called as the state enterprise. The state enterprise refers to those business units which are partly or wholly owned and controlled by the government. The formation, operating, and control systems are not same in every state enterprise.
Statutory Corporation: The state enterprise which is formed and controlled under a special act passed in Parliament or by the ordinance of the president is called Statutory Corporation. The area of operations of the statutory corporation is written in the ordinance. It can enjoy more independence than government departmental organization.
Features of statutory corporation: The features of statutory corporation are following;
Authority and operations: It is a creature of the state from which source allocate derive its ultimate authorization. The law defines its powers, functions, natures of management, and relationship with other departments of the government or field of operations.
Entity: Another feature of such an organization is its entity. It can take legal action and be go to court in its own name, enters into a contract, and acquires necessary property in its name.
Capital: The Corporation is usually supporting which is set up with its own capital. At the same it is entitled to borrow money, invest and reinvests money by its own decision.
Management: Management and administration is either vest in the board of directors or a joint stock company or an executive or chairman. In all cases, the chief executive, the members of the board are appointed by the government
Government intervention: Interference by government officials is usually avoidable although it works under the work of decisions of the legislatures.