Posted by / Tuesday 29 November 2016 / No comments

The main features of a Public Corporation

Definition of Public corporation
A Public Corporation is an entity that has been established by an Act of Parliament with the sole aim of providing services to the public at a reasonably priced rate. Some of these services include, but is not limited to, water, electricity, postal and telecommunication, public broadcast.

State owned
One of the features of a Public Corporation is that it is owned by the state. However, there are times when the government and other private business men team up to form the corporation but it does not change its state own tag.

Legal entity
Another feature of a Public Corporation is that it is a legal entity. In other words, it can be sued and can also sue others. As part of its human resource, Public Corporations can employ lawyers as their Legal Directors or can engage the services of one when the need arises.

Created by law
Another feature of a Public Corporation is that it is created by an Act of Parliament. Where there is no constitutional government in place, other legal avenues are used to create it. Another way of putting it is to say that it is created by a statute.

Board of Directors
A feature of a Public Corporation is that it has a Board of Directors which gives a general direction for the corporation to follow while leaving the day-to-day running to a Managing Director.

Financially independent
Public Corporations are independent financially. They are able to raise their own capital, generate their own income and make savings. They are also allowed to spend the money without recourse to approval from the government.

Different from the Civil Service
Public Corporations are different from the Civil Service in the sense that while Public Corporations recruit, promote and generally discipline its workforce, the Civil Service on the other hand recruits it workers through the Public Service Commission. Also, while workers of Public Corporations are called Public Servants, the Civil Service calls it workers, Civil Servants.

1. a. What is a Public Corporation? [3 marks]
   b. Highlight five features of a Public Corporation. [12 marks]

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