A government intends to establish a national transport body that operates with financial self-sufficiency, flexibility in daily decision-making, and immunity from civil service bureaucracy, while remaining accountable to the public through legislative oversight. Which corporate structure best satisfies these rationale requirements, and what is its defining legal feature?
- A statutory public corporation, which is established by a specific Act of Parliament as an autonomous legal entity capable of suing and being sued in its own name.Answer
- BA public limited company, which is established by selling majority equity shares on the stock exchange to private investors to ensure state non-interference.
- CA government department, which operates directly under civil service administrative rules and receives annual funding solely through direct ministerial budgetary allocations.
- DA general partnership, which secures public accountability by ensuring all state-appointed partners enjoy limited liability while running daily operations.
Answer
A statutory public corporation, which is established by a specific Act of Parliament as an autonomous legal entity capable of suing and being sued in its own name.
The correct option correctly identifies a statutory public corporation. Public corporations are created by a specific Act of Parliament (statute) which defines their powers, duties, and structure. They possess a separate legal entity status (can sue and be sued, own property), operational autonomy separate from civil service bureaucracy, and remain accountable to parliament through annual audited reports and ministerial policy directives.
Step-by-Step Solution
Key Concept
Rationale and Legal Features of Public Corporations
Estimated Time:1m 30s