Features of statutory operations

Features of Statutory Corporations: It is a corporate body: It is an artificial person created by law and is a legal entity. Such corporations are managed by Board of Directors constituted by Government. A corporation has a right to enter into contracts and can undertake any kind of business under its own name. Owned by state: State provides help to such corporations by subscribing the capital fully or wholly. It is fully owned by the state. Answerable to legislature: A statutory corporation is answerable either to Parliament Legislature or State Assembly whosoever creates it. Parliament has no right to interfere in the working of statutory corporations. It can only discuss policy matters and overall performance of corporation. Own staffing system: Employees are not government servants, even though government owns and manages a corporation. Employees of various corporations receive balanced or uniform pay and benefits by the government. They are recruited, remunerated and governed as per the rules laid down by the corporation. Financial independence: A statutory corporation enjoys financial autonomy or independence. It is not subject to the budget, accounting and audit controls. After getting the prior permission from the government, it can even borrow money within and outside the country.