Page 1 - Lesson Note 12
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SAI INTERNATIONAL SCHOOL
CLASSS XI
SUBJECT: BUSINESS STUDIES
CHAPTER -3, Public Private and Global Enterprise
CH 3 Lesson Notes 12 Public Corporation, Features, Merits and Demerits
Statutory / Public Corporations
Statutory corporations are public enterprises brought into existence by a Special Act of the
Parliament. The Act defines its powers and functions, rules and regulations governing its
employees and its relationship with government departments.
This is a corporate body created by the legislature with defined powers and functions and is
financially independent with a clear control over a specified area or a particular type o
commercial activity.
It is a corporate person and has the capacity of acting in its own name. Statutory corporations
therefore have the power of the government and considerable amount of operating flexibility of
private enterprises.
Features
Statutory corporations have certain distinct features, which are discussed as below:
i. Statutory corporations are set up under an Act of Parliament and are governed by the
provisions of the Act. The Act defines the objects, powers and privileges of a statutory
corporation.
