Statutory corporations enjoys autonomy in one hand and suffers from rigid structure on the other
hand. In context to it, give some merits and limitations of statutory corporations.
Merits
(i) Autonomy Such corporations enjoy autonomy in its day-to-day operations as they are free from political interference by ministers and bureaucrats.
(ii) Economies of Scale A statutory corporation is generally large in size and enjoys * monopolistic powers. It can easily avail the economies of large scale operations.
Limitations
(i) Rigid Structure The constitution of a statutory corporation is rigid as one cannot change its objects and functions without amending the statute.
(ii) Lack in Flexibility As huge funds are involved a lot of political interference is there in * management of the corporation.