List the Features of a Public Corporation.
List of Main features of a public corporation.
Owned by the state.
A public corporation is fully owned by the state and state is responsible in subscribing the whole of the capital.
Created by a special Act of legislature.
It is an autonomous corporate body created by special act of legislature and the powers, duties, immunities etc are defined by the Act.
It is a corporate body.
It is an artificial person by law and a legal entity. Board of Directors also called agents operate public corporations as it does not have any physical existence. A corporation, being an artificial person created by law, can enter into contracts and under its own name, transact any business.
Management by Board of Directors.
Its Board of Directors manage, operate and control public corporations. As per the provisions of the Act, Directors of the Board are constituted or formed. Board members are appointed by the concerned public authority.
Relation with the government.
As government helps in subscribing its capital, the relationship with the government is formal and clear. In many matters, government get things done without owning the responsibility for its actions.
Answerable to legislature.
A corporation is held responsible and answerable to legislature i.e. Parliament or State Assembly because it is created by legislature. The work of the Parliament is to discuss the policy matters and overall performance of corporation. It should not interfere in its everyday working.
Own staffing system.
Government can only regulate terms and conditions of employment of corporations. Employees are not said to be government servants and are recruited, governed and remunerated as per the rules laid down by the corporation.
A corporation does not have to worry about budget, accounting and audit controls. A corporation manages the funds on its own, without getting the budget approved by Parliament. After taking prior permission from the government, a corporation can borrow money within and outside the country.