Public corporations are formed by the government to provide goods and services to the citizens at low price. It has some specific features or characteristics such as government formation, government capital, government control, service motive etc.
Public corporation is created by a special act of parliament. It has a separate legal status and it can buy, own and sell property in its own name. It can sue and be sued in courts of law. Its motive is to deliver goods and services to public at fair price.
Initial capital of public corporation is provided by government through budget. It can borrow funds from government and public. It can also issue shares to public. Its income is deposited in its own account.
Its management is done by government appointed board of directors. The government also appoints its chief executive officer. It is controlled by government according to provisions of the special act.
4. Flexibility
Flexibility is another main feature of public corporation. It enjoys autonomy and flexibility in internal operations. It has its own rules and regulations. They are similar to government rules and regulations. however, it must follow government decisions.
Public corporation hires its own employees. They are not civil servants. It determines their salaries and benefits. They cannot be transferred by government decisions.
Public corporation is accountable to public through parliament. The auditor general audits its account and reports its performance.
Characteristics or features of public corporation are as follows:
1. Formation
Public corporation is created by a special act of parliament. It has a separate legal status and it can buy, own and sell property in its own name. It can sue and be sued in courts of law. Its motive is to deliver goods and services to public at fair price.
2. Capital
Initial capital of public corporation is provided by government through budget. It can borrow funds from government and public. It can also issue shares to public. Its income is deposited in its own account.
3. Management and control
Its management is done by government appointed board of directors. The government also appoints its chief executive officer. It is controlled by government according to provisions of the special act.
4. Flexibility
Flexibility is another main feature of public corporation. It enjoys autonomy and flexibility in internal operations. It has its own rules and regulations. They are similar to government rules and regulations. however, it must follow government decisions.
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5. Staffing
Public corporation hires its own employees. They are not civil servants. It determines their salaries and benefits. They cannot be transferred by government decisions.
6. Public accountability
Public corporation is accountable to public through parliament. The auditor general audits its account and reports its performance.
