Narrate the features of Statutory Corporation.
The features of a Statutory Corporation are as follows:
1. Formation:
Such bodies are formed by passing special laws of the Lok Sabha or Bidhan Sabha. Their purpose, structure, and activities are all written and regulated by law.
2. Management:
The law by which this organisation is formed, clearly mentions the rules related to its management. The organisation is managed by the Board of Directors constituted by law.
3. Separate entity:
These are autonomous bodies. Hence, such institutions have separate entities. This organisation itself can file a case.
4. Control:
The management of such organisations is vested in a board of directors appointed by the government. The functions of this organisation are regulated under a minister in charge.
5. Sustainability:
The survival or dissolution of such organisations is at the discretion of the Government. The policies and procedures of such institutions may change as a result of changes in government.
6. Purpose:
Such institutions are generally formed for the purpose of public welfare. Profit-making is not the main objective of this organisation.
7. Accounts:
The accounts of such institutions are audited by the Auditor General.
8. Risk:
The capital of such institutions is provided by the government. Therefore, the risk of the organisation is borne by the government.
9. Profit on government funds:
The profits of this organisation are deposited in the government treasury and are spent on public welfare as directed by the government.
10. Dignity of employees:
Employees of such institutions are not considered Government employees.
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