Statutory Corporation Features in India Explained
A statutory corporation is a specific type of government-owned enterprise established in India. Understanding its unique characteristics is key to distinguishing it from other business structures.
Key Features of a Statutory Corporation
- Creation by Statute: These corporations are established through a special Act passed by either the Parliament or a State Legislature. This legislative act defines their powers, functions, and objectives.
- Independent Legal Entity: A statutory corporation possesses its own distinct legal identity, separate from the government that created it. This means it can own property, enter into contracts, and importantly, sue and be sued in its own name.
- Public Ownership & Control: While having autonomy, they are ultimately owned and controlled by the government, operating in the public interest.
Analysis of Options
Let's evaluate why the correct option stands out:
- Option 1 (Correct): This option accurately captures the defining features: establishment by a special Act, separate legal status, and the ability to engage in legal proceedings (sue/be sued). These are hallmarks of a statutory corporation.
- Option 2 (Incorrect): This contradicts the principle of separate legal existence inherent to statutory corporations.
- Option 3 (Incorrect): While some employees might have government-like status, it's not a universal or defining characteristic. Statutory corporations often have their own specific employment rules distinct from civil service regulations.
- Option 4 (Incorrect): This describes a private limited company, not a government-established statutory corporation which is typically government-funded and not owned by private shareholders.
Therefore, the creation by a special Act and having independent legal status allowing it to sue or be sued are distinctive features.
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Important Questions from Economic and Financial Affairs
As per the Union Budget 2021-22, the government plans to continue on the path of fiscal consolidation, achieving a fiscal deficit level below 4.5% of GDP by ______.
- The National Rail Plan announced in the Union Budget of 2021-22 aims to create a future ready railway system by which of the following years?
As per the Economic Survey 2021, in which of the following states did the proportion of households that had health insurance decrease by 12% from 2015-16 to 2019-20?
As per Economic Survey 2020-2021, India’s real GDP is estimated to grow by ______ in financial year 2021-22.
As per the Economic Survey of India 2020-21, India is expected to have a Current Account Surplus of ______ GDP in FY21.
