What are statutory companies?
The statutory companies are also known as statutory corporations or public corporations, these are actually public bodies established and operated by Statute. A statute is any formal authority created by legislative authority that regulate or control a city, a state or a country. Known examples of statutory bodies are municipal councils, bar councils, universities etc.
Statutory Companies in India
In India, Statutory Companies are simply the public organizations that came into existence through a special Act of Indian Parliament. The Act provides and defines various functions and powers of a statutory body. The Act also defines various rules and regulations that regulate its employees. Every stator company has a specially defined relationship with various departments of government.
So, Indian definition of statutory companies says that “, A statutory company or corporation is a special body formed by the legislature. This statutory body will have defined and provided functions and powers. It will be financially independent and will have clearly defined regulation over a specific activity or area”,
From the above given definitions it is very clear that a statutory company will always enjoy the powers provided by the government and will have considerable functional flexibility just like some private enterprise. Few examples of statutory companies in India are given below-
• Damodar Valley Corporation
• Central Warehousing Corporation
• Food Corporation of India
• Airport Authority of India
• National Highway Authority of India