Tag: statutory/public corporations

Questions Related to statutory/public corporations

The maximum Statutory Liquidity Ratio to be maintained by banks is_______________:

organisation of commerce and management government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. 25%

  2. 30%

  3. 35%

  4. 40%

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Correct Option: D

Select the correct option given below:

Before the statutory meeting the secretary has to draft the _______.

organisation of commerce and management government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. progress report

  2. annual report

  3. statutory report

  4. none of the above

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Correct Option: C
Explanation:

Statutory meeting is the first meeting of the shareholders of a public company having a share capital and is held once in the lifetime of a company. The board of directors of a company shall atleast 21 days before the day on which the meeting is held, forward a report which is called as the statutory report to every member of the company. It should be certified as correct by atleast 2 directors.

Food co-operation of India is ________.

organisation of commerce and management government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. a joint stock company

  2. company managed by department

  3. company established by Special Act of Parliament

  4. none of the above

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Correct Option: C
Explanation:

Food co-operation of India was set up on 14th January, 1965. It is regulated by the food co-operation act, 1964. Hence, food co-operation of India is company established by special act of parliament.

Which of the following entity is created under an Act of the Parliament or an Act of the State legislature?

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. Statutory corporation

  2. Government companies

  3. Co-operative society

  4. Limited Liability Partnership

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Correct Option: A
Explanation:
Statutory corporation refers to public enterprise which is created by a special Act of Parliament or State Legislature. which provides for its management and methods of running them,their powers and privileges are determined and their relation with government departments are specified.

The objects and powers of a statutory corporation ______.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. may not change

  2. may not be changed easily

  3. may change easily

  4. none applicable

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Correct Option: B
Explanation:

It is very difficult to form statutory corporations because it requires lengthy documentation, complicated formalities and passing of statue.The policies once approved, the statue once passed cannot be changed easily. It can be done by the parliament only and this is very time consuming.

Which of the following function can a statutory corporation perform?

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. Acquire property on its own name

  2. Enter into contract

  3. Get sued or can sue

  4. All of the above

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Correct Option: D
Explanation:

A statutory corporation is a body corporate and can sue and be sued, enter into contract and acquire property in its own name.

The government appoints advisers to the board of corporation to look over functionality of the statutory corporations.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. True

  2. False

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Correct Option: A
Explanation:

The government has a practice of appointing advisors to the Corporation Board which curbs the freedom of the Corporation. If there is any disagreement, the matter is referred to the government for final decisions which further delays action.

The employees of statutory corporations are _____________.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. Government employees

  2. Civil servants

  3. Public sector employees

  4. None of the above

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Correct Option: D
Explanation:

The employees of statutory corporations are not government or civil servants or public sector employees and are not governed by government rules and regulations. The conditions of service of the employees are governed by the provisions of the act itself. 

Statutory corporations are wholly owned by ______________.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. The state government

  2. The central government

  3. Private sector

  4. All of the above

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Correct Option: B
Explanation:

Statutory corporations are wholly owned by the central government which has the ultimate financial responsibility and has the power to appropriate its profit and also has to bear the losses of any.

Statutory corporations are not concerned with the central budget of government.

commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

  1. True

  2. False

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Correct Option: A
Explanation:

Statutory corporations are public enterprises brought 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.It is a corporate person and has the capacity of acting in its own name.

Examples: Reserve Bank of India, State Bank of India, Life Insurance Corporation, Unit Trust of India, Employees State Insurance Corporation, Oil and Natural Gas Corporation etc. are some examples of statutory corporations.