Explain the meaning and give any five features of statutory corporation

A statutory corporation or a public corporation is a body corporate set up under a special act of the Parliament or of the State Legislature. It is known as a statutory corporation because it is created by a statute. The statute defines its objects, powers and functions. It is an autonomous body fully financed by the government. Some examples of statutory corporation are Air India, Life Insurance Corporation of India, Employees State Insurance Corporation, etc.
The important features of a statutory corporations are as follows
(i) Formation Came into existence by a special act passed in the Parliament, which defines the objects, powers and functions of the corporation.
(ii) Control and Ownership They are directly under the State Government. They have the power to appropriate its profits and also bear losses if any.
(iii) Body Corporate/Separate Legal Existence They can sue and be sued, enter into contracts and purchase or sell property in their own name.
(iv) Financial Autonomy They are financed by borrowings from the government or from public through revenue generated by sale of goods and services.
(v) Accounting and Audit Control They are free from government accounting and audit control and are also not financed through government treasury.