Statutory Corporation

A statutory corporation is an enterprise incorporated by a Special Act of Parliament or the State Legislature with the purpose of carrying out a specific business of national importance. It is a legal entity that operates under a specific statute or law and has powers and functions defined by that statute. Statutory corporations are created by the government to undertake activities that are in the public interest and require a separate legal entity to carry them out effectively.

Characteristics of Statutory Corporation:
- Created by Special Act: Statutory corporations are established through a Special Act of Parliament or the State Legislature. This act sets out the purpose, powers, and functions of the corporation.
- National Importance: The business undertaken by a statutory corporation is of national importance and serves the public interest. It may involve sectors such as infrastructure development, utilities, transportation, or public services.
- Separate Legal Entity: A statutory corporation has a separate legal existence from its members or shareholders. It can sue and be sued in its own name and is responsible for its debts and obligations.
- Autonomous Governance: Statutory corporations have a degree of autonomy in their governance. They typically have a board of directors or governing body appointed by the government, and they operate independently of direct government control.
- Limited Liability: Like other corporations, statutory corporations have limited liability. This means that the liability of the corporation is limited to its assets, and the personal assets of its members or shareholders are protected.
- Public Accountability: Although statutory corporations have autonomy, they are still accountable to the government and the public. They are required to submit regular reports, financial statements, and other information to ensure transparency and accountability.

Examples of Statutory Corporations:
- Airports Authority of India (AAI)
- Oil and Natural Gas Corporation (ONGC)
- National Thermal Power Corporation (NTPC)
- Life Insurance Corporation of India (LIC)
- Food Corporation of India (FCI)

In conclusion, a statutory corporation is an enterprise created by a Special Act of Parliament or the State Legislature to undertake a specific business of national importance. It operates as a separate legal entity, has limited liability, and is accountable to the government and the public.