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Government Company |
Statutory Corporation |
| Meaning |
Government Company means company where minimum 51% of the paid up capital is held by the Central or State Government jointly or individually. |
The company which is formed under a special Act of Parliament or State Legislature is known as Statutory Corporation. |
| Capital |
The capital is contributed by the Central Government or State Government or even by general public and financial institutions. |
Capital for the statutory corporation comes from Central or State government. |
| Managemen |
Government Company is managed by Board of Directors appointed by government and shareholders. |
Statutory Corporation is managed by Board of Directors nominated by government. |
| Control |
These companies are controlled by government or shareholders. |
Statutory corporation is controlled by government by the Act of Parliament or State Legislature. |
| Establishment |
Government companies are formed and registered under provisions of Companies Act, 2013. |
The statutory corporation is established by special Act of the Parliament or State Legislature. |
| Borrowing power |
Government companies can borrow funds by the way of debt or issuing shares to the public. |
tatutory corporation can borrow from public by issue of bonds. |
| Privileges & Concessions |
It has no privileges and concessions by government. |
It enjoys moderate privileges and concessions. |
| Suitability |
It is suitable for industrial and commercial undertakings, e.g. BHEL, SAIL, HMT, Indian Oil Corporation, Indian Refineries, Madras Refineries, Gujarat Refineries, etc. |
It is suitable for public utilities, development projects, service industry like banking and finance and other industrial and commercial undertakings e.g. UTI, LIC, RBI, ONGC, Air India etc. |
| Political Interference |
It has less political interference in management of company as it has its own Board of Director. |
It has more political interference as it is controlled by State and Central Government. |
| Flexibility |
Government companies are more flexible in operations of business. They can change line of business as per market trend. |
Statutory company are rigid in operations they are formed for the particular purpose. |
| Accountability I |
It is accountable to public. |
It is accountable to State and Central Government. |
| Autonomy |
It has full autonomy as its incorporated under Companies Act, 2013. |
It has theoretical autonomy as its established with certain purpose by Central or State Government. |
