Merits of Statutory Corporations:
1.Administrative autonomy: A public corporation is able to manage its affairs with independence & flexibility.
2.Quick decisions: A public corporation is relatively free from red-tapism, as there is less file work & less formality to be completed before taking decisions.
3.Service motive: The activities of the public corporation are discussed in parliament. This ensures the protection of public interest.
Demerits of Statutory Corporations:
1.Autonomy on paper only: The autonomy & flexibility of public corporation is only for name’s sake. Practically ministers, government officials & political parties often interfere with the working of these operations.
2.Lack of initiative: Public corporations do not have to face any competition & are not guided by a profit motive. So the employees do not take initiative to increase the profit & reduce loss. The losses of the public corporation are made good by the government.
3.Rigid structure: The objects & powers of public corporations are defined by the act & these can be amended only by amending the statute or the act. Amending the act is a time-consuming & complicated task.
