Statutory company
Statutory companies are those companies that are created by a special act of the legislature. Here is a detailed explanation:
Definition:
A statutory company is a type of company that is established by a specific law or statute enacted by the government. It is created for a specific purpose and has its own set of rules and regulations that govern its operations.
Key Points:
- Statutory companies are created through a special act of the legislature, which means that they have legal recognition and authority.
- These companies are usually established for public utility purposes, such as providing essential services like water supply, electricity, transportation, etc.
- They are typically owned and controlled by the government or a public authority.
- Statutory companies have a separate legal identity from their owners or shareholders.
- They are subject to specific regulations and oversight by the government or regulatory authorities.
- The management and governance structure of statutory companies are defined by the legislation that created them.
- They may have a specific mandate or objectives that they are required to fulfill.
- Statutory companies often enjoy certain privileges, exemptions, or powers that are granted to them by the governing law.
Example:
Some examples of statutory companies include public utilities like water boards, electricity boards, nationalized banks, railway companies, etc.
In conclusion, statutory companies are those that are created by a special act of the legislature for a specific purpose. They have their own set of rules and regulations and are subject to government oversight.