These organisations are also referred to as Public Corporations. These organisations are established and created by special Acts passed by the State or Central Legislature. The powers, duties and responsibilities of the Corporations are clearly laid down in the special Act formed for the purpose of the operation of the organisations.

These are organisations which have the power of the Government combined with public ownership and public accountability.

Characteristic features:

The following are the distinguishing features of Public Corporations:

ADVERTISEMENTS:

1. Incorporation:

These organisations are created by means of special statute passed in the Parliament or State Legislature.

2. Separate legal entity:

These units have separate legal existence. The wrong acts of the members of the organisations would not affect the existence of the organisations.

ADVERTISEMENTS:

3. State control:

Though these organisations have separate legal entities and are created by law, they are completely owned by State and are under Government control.

4. Nominated directors:

The Directors of these organisations are nominated by the Government and are not elected by the members.

ADVERTISEMENTS:

5. Service motive:

The primary objective of the corporations is to render essential and distinguished service to the public at large.

6. Employment conditions:

The employees of the corporations are not Government servants. Their service conditions are fixed by the corporations.