Statutory corporation
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A Statutory Corporation is a corporation created by statute. Their precise nature varies by jurisdiction thus they might be ordinary companies/corporations owned by a government with or without other shareholders, or they might be a body without shareholders which is controlled by national or sub-national government to the (in some cases minimal) extent provided for in the creating legislation.
Bodies described in the English language as "statutory corporations" exist in the following countries in accordance with the associated descriptions (where provided) :-
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[edit] Australia
In Australia, statutory corporations are created by either state or national parliaments, and are created by statute. Current statutory corporations include Australia Post, Airservices Australia, the Australian Rail Track Corporation and the Australian Egg Corporation. The purpose of their separation from normal government operations is to ensure profitability, and in theory, independence of decision making from the state or national government (to ensure that decisions are made on a commercial basis with less or no political interference.)
As statutory corporations, their regulatory and business conditions may be significantly different from private-sector companies. An example of this in Australia is the regulatory conditions placed on the national communications company Telstra.
A significant number of the statutory corporations are private commercial operations, a number of which have been privatised, in part or in whole, since the 1980s: these have included the national airline Qantas, Telstra (also previously known as Telecom Australia), and the Commonwealth Bank of Australia.
[edit] Canada
[edit] Germany
An example of a Statutory Corporation is a "Kassenärztliche Vereinigung", a body involved in the provision of out-patient medical services in a German state.
[edit] India
Statutory corporation are public enterprises into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments.
This is a corporate body created by the legislature with defined powers and functions and is financially independent with a clear control over a specified area or a particular type of commercial activity. It is a corporate person and has the capacity of acting in its own name. Statutory corporations therefore have the power of the government and considerable amount of operating flexibility of private enterprises.
[edit] Ireland
Main article: State-sponsored bodies of the Republic of Ireland.
In the Republic of Ireland, a statutory corporation is a body corporate, which is created under a particular Act of the Oireachtas, which is expected to operate as if it were a commercial company (with or without a subsidy from the Exchequer, depending on whether or not it would make a profit without one). Such bodies do not have shareholders, but are typically boards appointed by a sponsor minister. The provisions of the Companies' Acts do not typically directly apply to such bodies, although their founding legislation may specify similar requirements. As they are not formally companies they do not make a profit or loss, but rather a surplus or deficit.
The statutory corporation format was usually the form most state-sponsored bodies of the Republic of Ireland took until recent years, however usual policy today is that a private limited company by shares or public limited company incorporated under the Companies' Acts is set up instead, with the relevant Minister holding 100% of the issued share capital. Nonetheless as of 2007 several promient statutory corporations continue to exist, such as Radio Telefís Éireann, the Electricity Supply Board, and Bord Gáis Éireann
[edit] United Kingdom
In the United Kingdom, a Statutory Corporation is a corporate body created by statute. It typically has no shareholders and its powers are defined by the Act of Parliament which creates it, and may be modified by later legislation. Such bodies were often created to provide public services, examples including British Railways, the National Coal Board and the Post Office Corporation. Other examples include the county councils, the National Assembly for Wales[1] and the Olympic Delivery Authority.[2] The phrase is not used to describe a company which operates as a conventional shareholder-owned company registered under the Companies Acts.
[edit] United States
At the state level, municipal corporations and counties are often created by legislative acts. Some organizations such as a transit districts or special purpose corporations such as a university, are also created by statute. In some states, a city or country can be created by petition of a certain number or percentage of voters or landholders of the affected area, which then causes a municipal corporation to be chartered as a result of compliance with the appropriate law. Corporations to be established for most other purposes are usually just incorporated as any other non-profit corporation, by filing the paperwork with the appropriate agency as part of the formation of the entity.
At the Federal level, a small number of corporations are created by Congress. Prior to the District of Columbia being granted the ability to issue corporate charters in the late 1800s, corporations operating in the District required a congressional charter. With limited exceptions, most corporations created by Congress are not federally chartered, but are simply created as District of Columbia corporations as a result of the enabling law.[citation needed]
There are a number of federally chartered corporations that still exist, some relatively famous ones include the Boy Scouts of America, each of the Federal Reserve Banks, and the Federal Deposit Insurance Corporation. The basic advantage for being federally chartered is that no other corporation anywhere in the United States is allowed to have the same name.
[edit] References
- ^ Government of Wales Act 1998, Section 1
- ^ London Olympic Games and Paralympic Games Act 2006
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