These are organisations started by passing a special Act in the State or Central Legislature. It is a combination of Public ownership and Public accountability.
Features of Statutory Corporation
1. Incorporated by special Bills/Acts in parliament
2. Separate legal entity.
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3. State control.
4. Nominated directors of Government.
5. Service motive.
6. Employment conditions fixed by corporations.
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Merits of Statutory Corporations
1. Autonomy of operation
2. Absence of political interference.
3. Quick and prompt decision.
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4. Absence of exploitation.
5. Ease of raising capital.
Demerits of Statutory Corporations
1. No flexibility in operation.
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2. Misuse of powers.
3. Lack of efficiency.
4. Not easy to alter activities.
5. Political interference could be there.