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

In a statutory public corporation established to manage a nation's electricity grid, day-to-day operations are handled by executive management. Which authority holds the statutory responsibility for formulating general policy directives and appointing members of the governing board?

  1. The supervising government ministerAnswer
  2. B
    The general public through annual general meetings
  3. C
    The managing director of the enterprise
  4. D
    The judicial council through court orders

Answer

The supervising government minister holds the statutory authority to appoint board members and issue general policy directives to a public corporation.
The supervising minister represents the executive arm of government and exercises ministerial control over public enterprises. This oversight includes appointing members of the governing board, approving major capital expenditure projects, and issuing broad policy directives to align corporate activities with public interest.

Step-by-Step Solution

1
Analyze the management and control structure of statutory public enterprises.
Public corporations are owned by the government and created by an Act of Parliament to provide essential services.
Understanding the separation of ownership, policy control, and operational management is essential for identifying governing roles.
2
Distinguish between operational administration and ministerial control.
Executive management handles routine operations, while the supervising minister (executive government) appoints the Board of Directors and provides broad policy guidance.
Ministerial control ensures public corporations remain accountable to the government and align with national public interest objectives.

Key Concept

Ministerial Control of Public Enterprises
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Topics

Public Enterprises: Rationale, Features, Management, and Control

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