Public corporation new and final for teaching
- 1. PUBLIC CORPORATION DR.MRS.P.G.CHAVAN ASSISTANT PROFESSOR SHRI SHIVAJI LAW COLLEGE PARBHANI
- 2. INTRODUCTION • The participation of the government in the enterprise, may be total or partial, direct or indirect. The enterprise may, therefore, take the form of a departmental organisation, Government company or statutory corporation. However, the core features, is the intervention of the government in the affairs of enterprise. • It may be active, recommendatory, supervisory or advisory • This development has been facilitated by certain constitutional provisions. Under directive principle of state policy • Article 298 of the Constitution, extends the executive power of the union and of each State “to the carrying on of any trade or business and to the acquisition, holding and disposal of property and the making of contract for any purpose” • Article 19(ii) enables state “to carry on any trade business, industry or service”
- 3. MEANING AND DEFINITION OF PUBLIC CORPORATION A Public Corporation is a Corporation created by the government for political purposes, and having subordinate and local powers of legislation Public Corporation or Public undertaking or Public Enterprises means an activity of business character, managed and owned, by the Government, Central, State or Local providing goods/services for a price.
- 4. PROF. WADE, DEFINE The Public Corporation is hybrid organism, showing some of the features of a government department and some of the features of a business company, and standing outside the ordinary framework of Central and Local Government.
- 5. OBJECT A public corporation form of organization facilitates autonomy in its day-to-day administration and provides freedom from political influences To achieve the economic regeneration of the country, as well as to improve socio- economic well-being of the people, the government resort to economic planning on large scale It provides for a healthy mix of commercial efficiency of a private enterprise with public accountability of a government department and provides freedom from unsuitable rules, regulations and controls of the government. The corporation pattern facilitates a high degree of financial flexibility and personal mobility and serves as a valuable instrument for social control of economic life. Is to set up in India a socialist pattern of society.
- 6. PUBLIC CORPORATION EMPLOYEES OF P.C. ARE CIVIL SERVANTS & ARE RECURITED & REMUNERATED UNDER TERMS & CONDITIONS WHICH THE CORPORATION ITSELF DETERMINES THEY CAN BE LIABLE FOR BREACH OF CONTRACT HAS COMMON SEAL THEY CAN ENTER INTO CONTRACT IT IS LIKE THEY CAN BE SUE AND SUED ON THEIR OWN NAME IT CAN BE GOVERNMENT COMPANY OR BY UNDERTAKING BY PUBLIC SECTOR CREATED UNDER STATUTE ARTIFICIAL CREATURE OF LAW IT IS AUTONOMUS IN FINANCE MANAGEMENT. IT HAS FUNDS OF ITS OWN PERPETUAL SUCESSION AND CAN ACQURE ,HOLD AND DISPOSE OF THEIR OWN PROPERTY CONTRAL AND MANGEMENT CAN BE LARGELY REGULATED BY ITS OWN RULES IN IT LAYS DOWN RIGHTS & DUTIES SEC. 80 OF THE CPC, 2 MONTHS NOTICE BEFORE FILING A CASE AGAINST P.C. IT CAN MAKE RULES, REGULATIONS & OTHER KINDS OF DELEGATED LEGISLATION A STATUTORY CORPORATION IS A STATE WITHIN DEFINITION OF ART.12 & THEREFORE SUBJECT TO WRIT U/ART. 32 & 226
- 7. CLASSIFICATION OF PUBLIC CORPORATION 5) DEVELOPMENTAL CORPORATION:- E.g.; DAMODAR VALLEY CORPRATION, NATURAL RESEARCH DEVELOPMENT CORPORATION Ltd; REHABILITATION HOUSING CORPORATION Ltd; WAREHOUSING CORPORATION. 3) WELFARE ACTIVITIES CORPORATION:-Eg; EMPLOYEEES STATE INSURANCE CORPORATION, HOUSING BOARD. 4) COMMODITIES CONTROL CORPORATION: E.g.; TEA BOARD, RUBBER BOARD, ONGC, FOOD CORPORATION OF INDIA. 1) COMMERCIAL CORPORATIONS EXAMPLE-AIR INDIA,INDIAN AIR LINES,STATE TRADING CORPORATION, HINDUSTAN 2) FINANCIAL CORPORATION Eg; LIFE INSURANCE CORPORATION, RESERVE BANK OF INDIA, STATE BANK OF INDIA, INDUSTRIAL FINANCE CORPORATION.
- 8. CLASSIFICATION OF PUBLIC CORPORATION PUBLIC CORPORATION:- IS A BODY CREATED BY OR UNDER A STATUTE & ENTRUSTED WITH VARIOUS FUNCTIONS OF PUBLIC IMPORTANCE & OWNED OR CONTROLLED BY THE STATE. THEY CREATED THROUGH AN ACT MADE BY PARLIAMENT, PUBLIC CORPORATIONS INCLUDE LIFE INSURANCE CORPORATION OF INDIA, DAMODAR VALLEY CORPORATION ETC. GOVERNMENT DEPARTMENT UNDERTAKING IS THE UNDERTAKING WHICH IS COMPLETELY OWNED & CONTROLLED BY THE GOV. THE MINISTER IS ITS HEAD. THIS CATEGORY OF PUBLIC UNDERTAKING INCLUDES RAILWAYS, POSTS & TELEGRAPH TELEPHONE, RADIO & TELEVISION GOVERNMENT COMPANY:- IS REQUIRED TO BE REGISTERD UNDER THE COMPANIES ACT 1956. IT IS A NON-STATUTORY PUBLIC UNDER TAKING SEC. 617 OF THE ACT PROVIDES THAT “FOR THE PURPOSE OF THIS ACT, “ GOV. COMPANY” MEANS ANY COMPANY IN WHICH NOT LESS THAN 50% OF THE PAID-UP SHARE CAPITAL IS HELD BY THE CENTRAL GOV. OR STATE THE STATE GOV. OR PARTLY BY THE CENTRAL GOV. & PARTLY BY ONE OR MORE STATE GOVS. & INCLUDES A COMPANY WHICH IS SUBSIDIARY OF A GOV. COMPANY Eg. HINDUSTAN STEEL Ltd. STEEL AUTHORITY OF INDIA
- 9. FEATURES GOVERNMENT DEPARTMENT UNDERTAKING Under complete control of one of the ministries of government Finance from annul budget of the government:--e.g bullet train budget have to be decided No separate entity Employees are recruitments, Salary paid and compensated as per the rules of civil servants. It is staff by civil servants and is liable for contracts and torts to the extent laid down under Article 299 and 300 respectively. No Bord of Directors it is managed by government only They can be sued in the same manner as one can file against government.
- 10. Demerits Delay in action Inflexibility:-- Political interference Lack of initiative Lack of motivation:--work have be done according to order no application of mind as it is required in private sector Completely controlled by Government Lack of finance:-- though you see money is available but you cant use as per you wants in development needs but in private you can apply your mind MERITS Easy formation Effective control. Public revenue:-- e.g. railways and postal collection is considered as Public revenue it is deposited in government treasury account Secrecy:--All law are prepared by government so they very well know that what thing public should know and what not , so to maintain secrecy Public Confidence:-- Railways, postal service is secure job even defence related activity have to be keep in secrecy to maintain nationality of India Accountability to Government
- 11. STATUTORY CORPORATION OR PUBLIC CORPORATION Example Indian Airlines, S B I, F I C. etc. It is a body corporate formed by a special act of parliament or by the central or state legislature. Its powers, objects and limitations are also decided by the Act of legislature. It has separate legal existence.
- 12. FEATURES STATUTORY CORPORATION OR PUBLIC CORPORATION Under control of government Managed by bord of director nominated by governmentCreated by act of Parliaments. Has its own rules regulation. Power, objectives and limitation are decided by Act only. Separate legal entity:-- if any case is sued SBI OR Indian Airline so government will not responsible but it self will be responsible e.g SBI OR Indian airlines Enjoy administration autonomy It has to submits its annul report of working
- 13. MERITS Efficient staff Administrative Autonomy Quick decision.:-- no interference of government so there is quick decision Service motive:-- main motive to provide service than to earn profits Professional management:-- it is manged by BOD DEMERITS Lack of initiative:-- where ever this is service motive there is less initiative, why you are working because you are getting salary but if you do more or some different work than you must get some extra money Autonomy on paper only:-- rules and regulation and administration is of corporation BUT it will run and control by Government, it is interference of government in all this structure because BOD are appointed by government It have private structure and have government power
- 14. GOVERNMENTAL COMPANIES They are governed and ruled by the provisions of companies Act, like any other registered company It means any company in which at least 51 percent of the paid-up share capital is held by the central or state government. What ever capital e.g thousand cores that have to Example:-- Steel Authority of India, Hindustan machine tools, BHEL ( Bhartia
- 15. FEATURE OF GOVERNMENT COMPANY Registration under companies Act 2013 Separate legal entity Wholly or partly owned by government Financial Autonomy Manged by BOD. Efficient staff Ministerial control Accountable to the ministry or concered department
- 16. MERITS Administrative autonomy Efficient Staff Collaboration Greater flexibility DEMERITS Autonomy on paper only Bord packed with government representatives Political interference
- 17. LIABILITY OF PUBLIC CORPORATION LIABILITY UNDER TORT LIABILITY UNDER INDIAN CONSTITUTION LIABILITY UNDER CONTRACT CROWN PRIVILEGES LIABILITY UNDER CRIMINAL LAW. LIABILITY TO PAY TAX
- 18. PUBLIC CORPORATION LIABILITY UNDER CONTRACT SECTION 80 OF CIVIL PROCEDURE DO NOT APPLY ARTICLE 299 CAN NOT APPLY CAN SUE AND BE SUED FOR THE BREACH OF CONTRACT CAN ENTER INTO CONTRACTPUBLIC CORPORATION IS NOT DEPARTMENT OF GOVERNMENT FOR FILLING A SUITS
- 19. PUBLIC CORPORATION LIABILITY UNDER TORT VICARIOUS LIABILITY WHILE DISCHARHING HIS DUTIES IF THE ACT IS COMMITTED BY ITS SERVANT OR EMPLOYEE STATUTE CREATED SEPARATE LEGAL ENTITY LIABILITY UNDER TORT AS ANY OTHER PERSON CONFERED IT GIVES IMMUNITY ANY ACT DONE IN GOOD FAITH BY SERVANT OR EMPLOYEE
- 20. TYPES OF CONTROL PUBLIC CONTROL JUDICIAL CONTROL GOVERNMENT CONTROL PARLIAMENT CONTROL
- 21. PARLIAMENT CONTROL (b) Adjournment motions (e) Parliamentary committees especially the CPU. (c) Parliamentary debates unsystematic haphazard and ineffective. It operates through the instrumentalities of:’ (a) Question hour (d) Discussions on reports
- 22. GOVERNMENT CONTROL BY PARENT ACT GOVERNMENT CAN INSTITUTED INQUERY OR INVESTIGATION ON WORKING OF P.C. The government has the authority to frame rules and regulations CANNOT EXCEED AUTHORITY OR ABUSE POWER CONFERRED ON THEM CREATED BY STATUTE FINANCIALY DEPENDS ON GOVERNMENT lay down procedures and even prescribe the activities to be undertaken. The government stands empowered to appoint the chairman and members of the board of management and the managing director. The government can remove from office any member of the management fails to carry out the purposes for which it was created or if it fails to carry out the directives issued by the government. if any dispute arises between the Central government and the corporation, the decision of the Central government shall be final and binding. Usually, the audit of accounts is done by the auditors appointed by the government. THEY CAN BE ABLOISH OR SUPERSED OR DISSLOVE The government also controls the fixation of prices of goods produced by the enterprises as well as the quantum and rate of payment for services rendered.
- 23. PUBLIC CORPORATION UNDER JUDICIAL CONTROL CAN NOT CLAIM CROWN PRIVILEGES IS DEFINED UNDER ARTICLE 12 AS STATE IN INDIAN CONSTITUTION IT IS AS PRIVATE COMPANY OR PUBLIC COMPANY AGRIVED PERSON CAN FILE A SUIT UNDER ARTICLE 226 AND 32 THEY ARE ANSWERABLE IN COURT CAN BE SUED UNDER BREACH OF CONTRACT CAN BE SUED FOR TORT COMMITED BY HIS SERVANT OR EMPLOYEES AGANIST
- 24. PUBLIC CORPORATION UNDER PUBLIC CONTROL THEY ARE ACCOUNTABLE TO THE PEOPLE WITH WHOES FUNDS THEY DEAL & TO WHOSE WELFARE THEY CLAIM TO CATER. MASS MEDIA:- IT NOT ONLY REFLECT PUBLIC OPINION BUT ALSO CREATES PUBLIC OPINION. IT IS CHECK ON FUNCTIONONG OF PUBLIC ENTERPRISE BY EXPOSING POLITICAL OR OTHER INTERFERENCE, CORRUPTION & INEFFENCIENCY PREVAILING IN THE MANAGEMENT & FUNCTIONING OF P.C. INTERESTED REPRESENTATION:- IN ORDER TO MAKE PUBLIC UNDERTAKING DIRECTLY RESPONSIVE TO THE CONSUMERS, IT IS DESIRABLE THAT THEY MUST HAVE SOME SAYS IN THE AFFAIRS OF SUCH BODIES BY NOMINATING LOCAL AUTHORITIES & OTHER INTERES ORGANISATION IN THE FUNCTIONS OF THE PARTICULAR CORPORATION CONSUMER COUNCILS THEY ARE UNDER THE CONTROL OF CONSUMER PROTECTION ACT 1986 CONSUMER COUNCIL IS ESTABLISHED UNDER THIS CPA AT CERTRAL AND STATE LEVEL THE OBJECT OF THE COUNCIALS IS TO PROMOTE & PROTECET THE RIGHTS OF THE CONSUMER. & CONTROL PUBLIC ENTERPRISES PUBLIC MAY INFLUENCE THROUGH DIFFERENT CHANNELS