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Question

Difficulty: MediumPublic Enterprises: Rationale, Features, Management, and Control

A state-owned water corporation fails to maintain safety standards, resulting in polluted water supply to a municipality. Affected residents file a lawsuit in the High Court seeking damages and an order compelling compliance with statutory duties. Which form of control over public enterprises is being demonstrated in this scenario?

  1. Judicial controlAnswer
  2. B
    Ministerial control
  3. C
    Parliamentary control
  4. D
    Commercialization control

Answer

Judicial control
Because statutory public corporations are created as separate legal entities, they can sue and be sued. When members of the public seek legal redress or challenge ultra vires actions of a public enterprise through court litigation, it represents judicial control.

Step-by-Step Solution

1
Identify the key actors and forum in the scenario
The action involves citizens filing a lawsuit against a public corporation in the High Court.
Determining the institution handling the dispute establishes the mechanism of control.
2
Categorize the control mechanism based on legal functions
Court proceedings that hold statutory bodies accountable for legal duties constitute judicial control.
Public enterprises are separate legal entities capable of suing and being sued in court.

Key Concept

Control Mechanisms of Public Enterprises (Judicial Control)
Estimated Time:1m 15s
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Topics

Public Enterprises: Rationale, Features, Management, and Control

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