Are you curious to know what is statutory company? You have come to the right place as I am going to tell you everything about statutory company in a very simple explanation. Without further discussion let’s begin to know what is statutory company?
In the realm of corporate entities, the statutory company stands out as a unique legal structure with distinct characteristics and functions. This comprehensive guide aims to shed light on the concept of statutory companies, exploring their definition, features, examples, and merits within the framework of company law.
What Is Statutory Company?
A statutory company is a type of corporate entity established by a special act of legislation enacted by the government. It operates under specific regulations and guidelines outlined in the statute that brought it into existence. Unlike other forms of companies, statutory companies derive their authority and powers directly from the law.
What Is Statutory Company In Company Law?
In company law, a statutory company is defined as a corporation created by an act of parliament or legislature. It is subject to the provisions laid out in the enabling legislation, which govern its formation, operation, management, and dissolution. The legal framework surrounding statutory companies differs from that of ordinary companies formed under general company law provisions.
What Is Statutory Corporation Class 11?
In Class 11 commerce studies, students often encounter the concept of statutory corporations as part of their curriculum. Statutory corporations are entities established by specific statutes to fulfill specific public or governmental functions. Understanding their features, functions, and legal framework is integral to a comprehensive education in commerce and company law.
Features Of Statutory Corporation
Statutory corporations exhibit several distinctive features that set them apart from other forms of corporate entities. These features include:
- Creation by Statute: They are established by a special act of legislation.
- Limited Liability: Members enjoy limited liability, similar to shareholders in other companies.
- Government Control: They are subject to government oversight and control.
- Public Purpose: They are typically formed to serve public or governmental objectives.
- Perpetual Existence: They have perpetual succession, unaffected by changes in membership.
Statutory Company List
Examples of statutory companies vary across different jurisdictions and industries. Some common examples include:
- Reserve Bank of India (RBI)
- Life Insurance Corporation of India (LIC)
- Indian Railways
- Airports Authority of India (AAI)
- State Electricity Boards (SEBs)
- Oil and Natural Gas Corporation (ONGC)
- National Thermal Power Corporation (NTPC)
- Food Corporation of India (FCI)
- Indian Space Research Organisation (ISRO)
- Central Warehousing Corporation (CWC)
10 Examples Of Statutory Corporation
Statutory corporations encompass a diverse range of entities established to fulfill specific governmental or public functions. Here are ten examples from various sectors:
- National Highways Authority of India (NHAI)
- Telecom Regulatory Authority of India (TRAI)
- Central Pollution Control Board (CPCB)
- Indian Council of Agricultural Research (ICAR)
- Export-Import Bank of India (EXIM Bank)
- National Stock Exchange of India (NSE)
- National Bank for Agriculture and Rural Development (NABARD)
- National Payments Corporation of India (NPCI)
- Central Board of Secondary Education (CBSE)
- National Institute of Technology (NIT)
Merits Of Statutory Corporation
Statutory corporations offer several advantages, including:
- Government Oversight: They ensure government control and accountability.
- Specialization: They focus on specific sectors or functions, leading to expertise and efficiency.
- Stability: Their statutory framework provides stability and continuity.
- Funding: They may have access to government funding or resources.
- Public Service: They serve public or governmental objectives, contributing to the welfare of society.
Statutory Corporation Meaning In Hindi
The term “Statutory Corporation” translates to “कानूनी निगम” (Kanooni Nigam) in Hindi. It refers to corporate entities established by statute or legislation to fulfill specific governmental or public functions.
Conclusion
In conclusion, a statutory company or corporation is a specialized form of corporate entity created by legislation to fulfill specific governmental or public functions. With features such as government oversight, limited liability, and a focus on public service, statutory corporations play a vital role in various sectors of the economy. Understanding their significance within the framework of company law is essential for students, professionals, and policymakers alike.
FAQ
What Is A Statutory Company Meaning?
A statutory corporation is a body corporate formed by a special act of parliament or by the central or state legislature. It is fully financed by the government. Its powers, objects, limitations etc. are also decided by the act of the legislature.
What Is The Difference Between Statutory Company And Registered Company?
A statutory company as the word suggests a company that is governed by statutes. In simpler words, is a government establishment that is formed by the parliament itself whereas an Incorporated company the words suggest, is a company that legally got the status of a separate legal entity.
What Is The Difference Between Statutory And Government Company?
Government company is a corporate body that is created under the Indian Companies Act, 1956. It is governed by provisions of Companies Act. Whereas, statutory corporation is a corporate body created by either Parliament or State Legislature by a special act which defines its powers, duties and functions.
What Are The 10 Examples Of Statutory Corporation?
Here is a List of Some Public Corporation Statutory Organisations in India:
- Life Insurance Corporation (LIC)
- Reserve Bank of India (RBI)
- Air India Corporation.
- Food Corporation of India (FCI)
- State Bank of India (SBI)
- Central Warehousing Corporation (CWC)
- Oil and Natural Gas Commission (ONGC)
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What Is Statutory Company With Example
What Is Statutory Company In Company Law
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Features Of Statutory Corporation
Statutory Company List
10 Examples Of Statutory Corporation
Merits Of Statutory Corporation
Statutory Corporation Meaning In Hindi
What Is Statutory Company
