Statutory Corporations

Statutory Corporations are entities that are set up under an Act of parliament and are governed by the provisions of the Act. These corporations are created by the government to perform specific functions or provide essential services to the public. Here are some key points about statutory corporations:

Legal Structure
- Statutory corporations have a separate legal existence from their members or shareholders.
- They are established for a specific purpose outlined in the Act of parliament that creates them.
- They have the power to sue and be sued in their own name.

Governance
- The governance structure of statutory corporations is defined by the Act of parliament that establishes them.
- They usually have a board of directors or governing body responsible for overseeing their operations.
- The government may have a significant level of control over the appointment of board members and the direction of the corporation.

Accountability
- Statutory corporations are accountable to parliament and the public for their actions and performance.
- They are required to submit annual reports and financial statements to parliament for scrutiny.
- Their operations are subject to audit by government auditors or other regulatory bodies.

Examples
- Examples of statutory corporations include national railways, postal services, and regulatory bodies like the Securities and Exchange Commission.

In conclusion, statutory corporations are important entities that are established by the government to provide essential services or perform specific functions. They operate under the provisions of an Act of parliament and are accountable to parliament and the public for their actions.

Statutory corporation