question_answer

Differentiate between Statutory Corporation, Departmental Undertaking and Government Company.

Answer:

Ans.     Differences between Statutory Corporation, Departmental Undertaking and Government Company are summarized in the table given below:

Basis	Statutory Corporation	Department Undertaking	Government Company
Formation	By a special act of Parliament or State Legislature	By a Ministry	Under Companies Act with or without Private Sector participation
Ownership	Wholly owned by the Government	Wholly owned by the Government	At least 51% share capital is held by the Government.
Autonomy	Sufficient	No Autonomy	Highest
Legal Status	Separate legal entity	No separate legal entity	Separate legal entity
Public Accountability	Moderate	Highest	Low
Personnel	Not government employees but hired under a contract of service	Government employees	Not government employees but hired under a con- tract of service
Funds	Financed from its own resources which may include issue of shares and debentures.	Financed from government budget	Financed from its own resources which may include issue of shares and debentures.
Suitability	Industrial and commercial undertakings	Defense, services of public utility like education, health etc.	Industrial and commercial undertakings
Example	LIC, GIC, SBI, RBI etc.	Railways, Post and Telegraph	SAIL, GAIL, BHEL etc.