How a Government company is different from Statutory corporation?
Differences between Government Company and Statutory Corporation:
Government company is a corporate body that is created under the Indian Companies Act, 1956. It is governed by provisions of Companies Act. Whereas, statutory corporation is a corporate body created by either Parliament or State Legislature by a special act which defines its powers, duties and functions.
Statutory corporation is managed by the Board of Directors nominated by the government whereas government company is managed by Board of Directors consisting of members that are nominated by the government and the elected shareholders.
Government subscribes the full capital in case of statutory corporation and government pays a minimum of 51% of capital in case of government company.
Scope for Private Participation.
There is no scope of private participation in case of statutory corporation. In case of government company, there is a scope for private participation in the capital if the company is partly owned by the government.
A statutory corporation works as an autonomous body within the permissions of the Act. It enjoys considerable degree of autonomy with no interference of government in day-to-day activities. A government company runs on commercial principles like a private enterprise and enjoys higher degree of freedom from government interference.
A public corporation is subject to some restrictions of the government whereas a government company enjoys more freedom from government control.
Public, corporation is accountable to the public through legislature whereas in a government company, government and the concerned ministry are accountable to the public.