A statutory public corporation is established to provide essential infrastructure and public utility services across the nation. Which of the following constitutes the primary legal feature distinguishing this enterprise from a public limited company?
- It is established by a specific Act of Parliament detailing its powers and objectives rather than being registered under general company law.Answer
- BIt raises its initial capital by issuing ordinary shares directly to private investors on the stock exchange.
- CIt lacks an independent legal personality and therefore cannot acquire property or enter contracts in its own name.
- DIts operational staff are recruited and directly controlled by the Civil Service Commission as core government ministry personnel.
Answer
The primary legal feature distinguishing a statutory public corporation from a public limited company is that it is established by a specific Act of Parliament detailing its powers and objectives rather than being registered under general company law.
Statutory public corporations are established through special legislation enacted by Parliament or the state legislature. This Act defines their legal powers, duties, management structure, and public service objectives, whereas public limited companies are formed under standard company incorporation statutes.
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Key Concept
Features and Legal Status of Statutory Public Corporations