A statutory public corporation established to manage state electricity services experiences frequent operational inefficiencies. The supervising minister attempts to directly take over routine staff recruitment and manage day-to-day administrative affairs. Which of the following statements explains why this direct intervention violates the governance principles of a public corporation?
- The Board of Directors is legally charged with administrative management and operational oversight, while ministerial control is restricted to general policy direction.Answer
- BEmployees of statutory corporations are direct civil servants subject exclusively to the administrative jurisdiction of the Civil Service Commission.
- CPublic corporations operate as private limited companies whose management decisions can only be altered by equity shareholders.
- DInternal operational regulations laid down in the Articles of Association reserve all personnel decisions for parliamentary committees.
Answer
The Board of Directors is legally charged with administrative management and operational oversight, while ministerial control is restricted to general policy direction.
Statutory public corporations possess administrative autonomy. Their day-to-day management and operational decisions are entrusted to an appointed Board of Directors. The supervising Minister exercises broad oversight by giving general policy directions and answering for the enterprise in parliament, but cannot legally micro-manage routine internal administration.
Step-by-Step Solution
Key Concept
Management and Control Structure of Statutory Public Corporations
Estimated Time:1m 0s