Meaning and Features of Public Corporation
A public corporation is that form of
public enterprise which is created as anautonomous unit, by a special Act of
the Parliament or the State Legislature.
Since a public corporation
is created by a Statute; it is also known as a statutory
The Statute defines the objectives,
powers and functions of the public corporation. Life Insurance Corporation of
India, the Indian
Airlines, the Air India International,
Oil and Natural Gas Commission etc. are some examples of public corporations in
A public corporation is created by a
special Act of the Parliament or the State Legislature. The Act defines its
powers, objectives, functions and relations with the ministry and the
Parliament (or State Legislature).
A public corporation is a separate legal
entity with perpetual succession and common seal. It has an existence,
independent of the Government. It can own properly; can make contracts and file
suits, in its own name.
The capital of a public corporation is
provided by the Government or by agencies controlled by the government.
However, many public corporations have also begun to raise money from the
A public corporation enjoys financial
autonomy. It prepares
its own budget; and has authority to retain and
utilize its earnings for its business.
Its management is vested in a Board of
Directors, appointed or nominated by the Government. But there is no
Governmental interference in the day-to-day working of the corporation.
A publication corporation has its
own staff; whose appointment, remuneration and service conditions are
decided by the corporation itself.
The main objective of a public
corporation is service-motive; though it is expected to the self-supporting and
earn reasonable profits.
A public corporation has to submit its
annual reportonitsworking. Itsaccountsareaudited by the Comptroller and Auditor
General of India. Annual report and audited accounts of a public corporation
are presented to the Parliament or State Legislatures, which is entitled to discuss