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

Because a statutory public corporation is established as a separate legal entity, it can acquire, hold, and dispose of property in its own corporate name rather than in the name of the supervising government ministry.

Answer: Answer

Answer

True
Statutory public corporations are distinct legal entities created by specific Acts of Parliament. This legal status endows them with corporate personality, allowing them to own assets, execute contracts, and assume liabilities under their own corporate name.

Step-by-Step Solution

1
Analyze the legal structure of a statutory public corporation.
Statutory public corporations are brought into existence by specific legislative enactments that confer artificial legal personality.
Understanding incorporation status distinguishes public corporations from government departments.
2
Evaluate the property ownership rights of a separate legal entity.
Separate legal personality allows an enterprise to hold title to property, sue, and be sued in its own name.
Legal independence separates corporate assets from the general assets of the supervising ministry.

Key Concept

Separate legal personality of statutory public corporations
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Topics

Public Enterprises: Rationale, Features, Management, and Control

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