Multiple choice

Which of the following statements are true with regard to statutory corporation?

(i) Generally financed by the central or state government (ii) Can not recruit and appoint their employee with their service condition (iii) Have a separate legal entity (iv) A lot of government interference in matters of the corporation

  1. (i) and (ii)

  2. (i) and (iii)

  3. (i), (ii) and (iii)

  4. (i), (ii), (iii) and (iv)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Some of the features are:

  1. Generally financed by the central or state government
  2. Can borrow funds from the public and government organisation through statutory sources
  3. Have separate legal entity
  4. Have to frame their own policies and procedures within the scope of state legislature
  5. Providing better services to public and make adequate profit.
  6. Autonomous in their functioning thus they enjoy operation flexibility.
  7. Can recruit & appoint their employee with their service condition, since they are corporate body.
  8. Have to follow the special statute strictly.
  9. Less government interference in matters of the corporation
  10. Limited liability of the members of the corporation

Thus, only (i) and (iii) are true. 

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