Statutory corporation

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A statutory corporation is a government entity created as a statutory body by statute. Their precise nature varies by jurisdiction, but they are corporations owned by a government or controlled by national or sub-national government to the (in some cases minimal) extent provided for in the creating legislation.

Bodies described in the English language as "statutory corporations" exist in the following countries in accordance with the associated descriptions (where provided).

Australia

In

created by Acts of state or federal parliaments.

A statutory corporation is defined in the federal

Current statutory corporations include Australia Post, Airservices Australia, the Australian Rail Track Corporation and the Australian Egg Corporation. The purpose of their separation from normal government operations is to ensure profitability, and in theory, independence of decision making from the state or national government (to ensure that decisions are made on a commercial basis with less or no political interference.) As statutory corporations, their regulatory and business conditions may be significantly different from private-sector companies.^{[citation needed]}

A significant number of the statutory corporations are private commercial operations, a number of which have been privatised, in part or in whole, since the 1980s: these have included the national airline Qantas, Telstra (also previously known as Telecom Australia) and the Commonwealth Bank.^{[citation needed]}

Germany

A statutory corporation in Germany is called a Körperschaft des öffentlichen Rechts (KdöR). An example of a statutory corporation is a Kassenärztliche Vereinigung, a body involved in the provision of out-patient medical services in a German state. Other examples include public broadcasters, Jewish communities and Christian churches established in Germany and some public transport providers (depending on jurisdiction).

Hong Kong

In Hong Kong, some corporations are incorporated by legislation. An example is the

.

India

Statutory corporations are government establishments brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments.

This is a body corporate created by the legislature with defined powers and functions and is financially independent with a clear control over a specified area or a particular type of commercial activity. It is a corporate person and has the capacity of acting in its own name. Statutory corporations therefore have the power of the government and the considerable amount of operating flexibility of private enterprises. A few are:

• Airports Authority of India
• Damodar Valley Corporation
• National Highways Authority of India
• Central Warehousing Corporation (cewacor.nic.in/)
• Inland Waterways Authority of India (www.iwai.gov.in/)
• Food Corporation of India (fciweb.nic.in/)

Features:

1. Generally financed by the central or state government.
2. May borrow funds from the public and government organisation through statutory sources.
3. They have separate legal entity.
4. They have to frame their own policies and procedures within the scope of state legislature.
5. Provide better services to public and make adequate profit.
6. They are autonomous in their functioning, thus, they enjoy operational flexibility.
7. They can recruit and appoint their employees with their service condition, since they are a corporate body.
8. They have to follow the special statute strictly.
9. There is less government interference in matters of the corporation.
10. The members of the corporation have limited liability.
11. a public corporation is public body incorporated under a separate statue

Which define its objectives, power and duties. It is created by a special law Of parliament. It may be established by the central government are also known as National corporations.

Republic of Ireland

In the

, but are typically boards appointed by a sponsor minister. The provisions of the Companies' Acts do not typically directly apply to such bodies, although their founding legislation may specify similar requirements.

The statutory corporation format was usually the form most

.

Netherlands

In the Netherlands, the term "public body" is the general denomination for administrative divisions within the Dutch state or certain other types of governmental organisations.

United Kingdom

In the

The phrase is not used to describe a company which operates as a conventional shareholder-owned company registered under the Companies Acts.

See also

• A non-departmental public body is a classification to certain types of public bodies.
  • Quango (quasi-autonomous-non-governmental organisation) is a commonly used acronym to refer to a non-departmental public body.
• The
  Scottish public bodies
  is used to indicate all quangos and other organisations in Scotland.

N.B. An entity described by the undefined term public body is not inevitably a statutory corporation.

United States

At the state level,

, by filing the paperwork with the appropriate agency as part of the formation of the entity.

At the Federal level, a small number of corporations are created by

]

There are a number of federally chartered corporations that still exist. Some relatively famous ones include the Boy Scouts of America, each of the Federal Reserve Banks, and the Federal Deposit Insurance Corporation. The basic advantage for being federally chartered is that no other corporation anywhere in the United States is allowed to have the same name.

See also

• Government agency
• Statutory authority
• Crown corporation
• Government-owned corporation
• Regulatory agency
• Non-departmental public body
• Établissement public à caractère industriel et commercial
• Crown corporations of Canada
• Tokushu hōjin (specially designated public corporation in Japan)
• Crown entity, similar bodies in New Zealand

References

Further reading

• Garnaut, Ben. Understanding statutory authorities and corporations in SA Bulletin (Law Society of South Australia), Vol. 40, No. 4, May 2018: 10, 12. ISSN: 1038-6777.