Differentiate and ExplainGS2GS2
Differentiate between corporation and company and explain why the public corporations are established?
Main Body
Corporations & companies emerged mainly in NPM era, where state had to collaborate, cooperate with private sector in form of infrastructures, PPPs.
Differences:
Corporation:
1Formed via separate act - LIC Act
2Wholly owned by government generally
3Objectives, functions, relation with other govt body enumerated in Act
4Purpose is public welfare
Companies:
1Formed via executive order under companies act 1951
2>51% owned by government
3All these are listed in executive order & not act
4Purpose is business activity
Public corporations are established because -
1For more autonomy & to serve public interest in operation.
2To make it free from political interference
3Synnesis of accountability, as owned by govt & efficiency, as managerial practices from private sector adopted
4High flexibility in operations in terms of finance, ageing property's
Although, many corporations are now converted into companies due to efficiency aspect. For example - LIC's IPO is audited now.
158 words6 paragraphs
Examiner score
1.2/10Open original scan
Page 39
Topper
GAURAV PRATAP SINGH
AIR 3172025
Subject & Paper
GS2GS2
Topic
Statutory, Regulatory and Quasi-judicial Bodies
Statutory Bodies
Public Corporations and Companies
Writing Stats
158
Total words
6
Paragraphs
academic
Tone