What is a statutory corporation and what are the main features of a statutory corporation ?

The term 'statutory corporation' (or public corporation) refers to such organisations which are incorporated under the special acts of the Parliament/state legislative assemblies. Its management pattern, its powers and functions, the area of activity, rules and regulations for its employees and its relationship with government departments, etc. are specified in the concerned Act. It may be noted that more than one corporation can also be established under the same Act. State Electricity Boards and State Financial Corporation fall in this category. The main features of statutory corporations are as follows: (a) It is incorporated under a special act of Parliament or state legislative assembly. (b) It has a separate legal existence. (c) It is an autonomous body and is free from government control in respect of its internal management. However, it is accountable to the Parliament or the state legislature. (d) It is managed by board of directors, which is composed of individuals who are trained and experienced in business management. The members of board of directors are nominated by the Government. (e) It is supposed to be self-sufficient in financial matters. However, in case of necessity it may take loan and/or seek assistance from the government (f) The employees of the enterprises are recruited as per their own requirements by following the terms and conditions of recruitment decided by the Board.