Compare the Company Form of Organization with Statutory Corporation.

Comparison between company form of organization and statutory corporation:

Statutory Corporation

Formation: Such a corporation is formed by a special act of legislature.

Management: It is managed by the Board of directors constituted by the government.

Capital: Capital is fully subscribed by the government.

Scope for private Participation: There is no scope for private participation.

Flexibility: It is subject to some restrictions by the government.

Operational Autonomy: A corporation works as a autonomous body within the provisions of the Act.

Public Accountability: It is accountable to the public through legislature.

Government Company/Company form of organization

Formation: Company is formed by ministry under the Companies Act, 1956.

Management: It is managed by the Board of Directors consisting of members nominated by the government and elected shareholders.

Capital: Minimum of 51% of capital is paid by government.

Scope for private Participation: There is a scope for private participation in its share capital and its affairs.

Flexibility: It enjoys more freedom from government control.

Operational Autonomy: Government company runs on commercial principles like a private enterprise.

Public Accountability: Government and concerned ministry are accountable to the public.

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