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 corporation.
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 India.
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 capital market.
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 these.