Examkin

Question

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

A public corporation created by a specific statute can be voluntarily dissolved by a simple resolution of its Board of Directors.

Answer: Answer

Answer

False. A public corporation established by statute can only be dissolved by an Act of Parliament, not by a resolution of its Board of Directors.
The statement is false because public corporations are statutory bodies created by legislative enactments; therefore, their dissolution requires an Act of Parliament repealing the founding law, not merely an internal decision by the Board of Directors.

Step-by-Step Solution

1
Analyze the legal status and creation process of public corporations
Public corporations are statutory bodies created by a specific Act of Parliament, giving them legal personality and perpetual succession.
The legal mechanism used to bring an organization into existence dictates how it can be legally dissolved.
2
Evaluate the limits of authority of the Board of Directors regarding dissolution
The Board of Directors only exercises management powers delegated under the enabling statute and cannot override or repeal an Act of Parliament.
Only the legislature that passed the establishing legislation holds the legal mandate to repeal the statute and dissolve the enterprise.

Key Concept

Creation, Legal Status, and Dissolution of Public Enterprises
Rate this question

Topics

Public Enterprises: Rationale, Features, Management, and Control

More questions from this topic