Advertisements
Advertisements
Question
Distinguish Between Government Company and Statutory Corporation.
Solution
| S. No. | Points | Government Company | Statutory Corporation |
| 1. | Meaning | Government Company means a company where a minimum 51% of the paid-up capital is held by the Central or State Government jointly or individually. | The company which is formed under Special Act of Parliament or State Legislature is known as Statutory Corporation. |
| 2. | Capital | The capital is contributed by the Central Government or State Government or even by the general public. | Capital for the statutory company comes from Central or State Government. |
| 3. | Management | Government Company is managed by the Board of Directors appointed by the government and shareholders. | It is managed by a board of directors nominated by the government. |
| 4. | Control | These companies are controlled by the government or shareholders. | It is controlled by the government by the Act of Parliament or State Legislature. |
| 5. | Establishment | Government companies are formed and registered under the provisions of Companies Act, 2013. | It is established by passing a Special Act in the Parliament or in the State Legislature. |
| 6. | Borrowing power | Government companies can borrow funds by the way of debt or issuing shares to the public. | Statutory Companies can borrow from the public by issue of shares and debentures. |
| 7. | Flexibility | Government companies are more flexible in the operations of the business. They can change the line of business as per the market trend. | It has moderate flexibility in its operation |
| 8. | Autonomy | It has full autonomy as its incorporated under Companies Act, 2013. | It has autonomy in decision making. |
APPEARS IN
RELATED QUESTIONS
Select the correct option and rewrite the sentence:
A _________ is an autonomous corporate body created by the special Act of the Parliament or State legislature.
Select the correct option and rewrite the sentence:
A statutory corporation is answerable to ___________ Or state assembly whosoever creates it.
Give one word/phrase/term.
An autonomous corporate body created by the Special Act of the parliament or state legislature with defined powers, functions, and duties.
Give one word/phrase/term.
An organisation which is answerable to parliament or state assembly whosoever creates it.
Give one word/phrase/term.
An organisation which 1s not subject to the budget, accounting and audit controls by the government.
Complete the sentence.
A ___________ has defined powers, functions and duties.
Answer in one sentence.
What is Statutory Corporation?
Explain the following term/concept.
Statutory Corporation.
Attempt the following.
Merits of Statutory Corporation.
Attempt the following.
Demerits of Statutory Corporation.
Answer the following in detail.
Explain merits and demerits of Statutory Corporation.
Match the pairs.
| Group A | Group B |
| A) BHEL | 1) Special Legislature |
| B) Statutory Corporation | 2) 49% paid up capital by govt. |
| C) Departmental Organisation | 3) Service Motive |
| D) Private Sector | 4) Railway |
| E) Public Sector | 5) Profit Motive |
| 6) 51% paid up capital by govt. |
Match the pairs.
| Group ‘A’ | Group ‘B’ | ||
| A) | BHEL | 1) | Special Legislature |
| B) | Statutory Corporation | 2) | 49% paid up capital by govt. |
| C) | Departmental Organisation | 3) | Service Motive |
| D) | Private Sector | 4) | Railway |
| E) | Public Sector | 5) | Profit Motive |
| 6) | 51% paid up capital by govt. | ||
