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

Public corporations established by an Act of Parliament possess separate legal entity status, and their operational staff are directly classified as civil servants subject to Civil Service Commission rules.

Answer: Answer

Answer

False. Although public corporations are established as separate legal entities by an Act of Parliament, their staff are public servants controlled by their governing board, not civil servants governed by the Civil Service Commission.
Statutory public corporations possess operational autonomy and separate legal personality. Consequently, their staff are public servants accountable to the governing board rather than civil servants under the Civil Service Commission.

Step-by-Step Solution

1
Analyze the legal status of statutory public corporations.
Statutory public corporations are created by a specific Act of Parliament, giving them legal personality independent of the government.
Establishing legal personality allows corporations to sue, be sued, hold property, and enter contracts in their own name.
2
Examine the employee classification and administrative control.
Corporation employees are public servants recruited and managed by the corporation's Board of Directors, whereas civil servants work in government ministries under the Civil Service Commission.
Autonomy in staffing and administration is a defining feature designed to enable commercial efficiency distinct from ministerial bureaucracy.
3
Evaluate the validity of the statement.
The second part of the statement conflates public servants of statutory corporations with ministerial civil servants, making the overall statement false.
A true/false statement containing a factual error regarding operational control must be evaluated as false.

Key Concept

Features and Staffing Structure of Public Corporations
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Topics

Public Enterprises: Rationale, Features, Management, and Control

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