Features, Merits and Demerits of Statutory Corporations


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.

3. State control.

4. Nominated directors of Government.

5. Service motive.


6. Employment conditions fixed by corporations.

Merits of Statutory Corporations

1. Autonomy of operation

2. Absence of political interference.


3. Quick and prompt decision.

4. Absence of exploitation.

5. Ease of raising capital.

Demerits of Statutory Corporations


1. No flexibility in operation.

2. Misuse of powers.

3. Lack of efficiency.

4. Not easy to alter activities.


5. Political interference could be there.

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