Meaning: Statutory Corporation is an autonomous form of Public sector. It is formed by passing a Special Act either at the Legislature Assembly or at the Parliament. The "Statue" clearly defines the rules and regulations, plans & policies, rights & powers, limits & scope for working of the corporation. It is formed with the intention of service motive only.
Examples: Reserve Bank of India, State Bank of India, Life Insurance Corporation, Unit Trust of India, Employees State Insurance Corporation, Oil and Natural Gas Corporation etc. are some examples of statutory corporations.
Definition: According to Herbert Morrison, "A public corporation is a combination of public ownership, public accountability & business management for public ends."
Features of Statutory Corporations: The features of statutory corporation are as follows:-
(1) Management: Statutory corporations are managed by the Board of Directors, appointed by the government.
(2) Accountability: Statutory corporation is accountable to public & parliament. Hence it is account and audited by the Comptroller & Auditor General of India (CAG). This ensures public accountability.
(3) Appointment: They can freely recruit people and can give promotions and transfers to any employee according to the company requirement.
(4) No Interference: Statutory corporation can have its own pattern. There is no political interference in day to day working of the corporation.
(5) Objectives: It works on profit objective and as such its activities are commercial in nature.
Yes it is very easily understandable.