NOTES

•      A public corporation is created by a separate legislative act. It is a separate legal entity. It can sue or be sued without any government approval.

•      These corporations are financed by the government. In some cases private capital may also be associated, but at least 51% of the shares are held by the government.

•      Corporations are not dependent on the state exchequer for its day-to-day financial requirements. Legislatures do not pass their budgets. They can also raise loans separately.

•      The management of the corporation is appointed by the Government. Generally a board is nominated to manage these undertakings.

•      The motive of public corporations is to provide service to the public at a reasonable price.

•      Independent Recruitment of Employees:

•      These corporations recruit their own employees. They can appoint capable persons to manage the corporations on commercial lines.

•      No Government Interference:

•      Public corporations are free from government interference.

•      They execute their independent policies. They do not depend upon government departments for determining their policies.