Statutory companies, Business Law and Ethics

Statutory Companies:

A statutory company is formed by a specific Act of Parliament, primarily as a means of conferring on it some powers which would not be available to it if it were formed by Royal Charter or registration under the Companies Act. A statutory company has no shareholders and its initial capital is provided by the Treasury. Therefore it is expected to operate according to commercial principles and to make profits. If it makes losses and becomes unable to pay its debts so there its property can be attached with its creditors but it cannot be wound up on the application of any creditor. However, the government will usually come to its aid if it has no cash or other assets to pay its creditors. Examples of such companies are the water, gas, electric and railway companies formed in England during the last century. Most of these companies were nationalised by the British government after the second world war and their functions transferred to public boards and corporations set up by Acts of Parliament. The public boards and corporations resembled those that were later set up in Kenya by the colonial administration, such as the Agricultural Finance Corporation, and the Wheat Board.

Posted Date: 1/12/2013 1:55:17 AM | Location : United States







Related Discussions:- Statutory companies, Assignment Help, Ask Question on Statutory companies, Get Answer, Expert's Help, Statutory companies Discussions

Write discussion on Statutory companies
Your posts are moderated
Related Questions
Question 1 Explain the sections 167 and 172 of the Indian penal code Question 2 Write a note on the Cyber Regulations Appellate Tribunal Question 3 Write a note on Digit

Rights of Guarantor Against the Debtor Therefore the guarantor's rights alongside the debtor are: like; (a) Before the payment has been made, whereas to compel the debtor t

Trading arrangements: From this statement, it can be inferred that, if a court held that a company acted in a particular instance as an agent of its holding company, the veil

The International Court of Justice The International Court of Justice (ICJ) issued a legal opinion on the legality of nuclear weapons, which says that the threat or use of forc

Division of company's Powers: Article 80 of Table A states: "The business of the company shall be managed by the directors one who may... exercise all the such powers of th

Doctrine of "Constructive Notice":  The doctrine of "constructive notice" is a rule of company law to the effect that a person transacting business with a company is taken to

What are the disadvantages of doctrine of judicial precedent? Disadvantages of doctrine of judicial precedent: • Overtime here has been a huge number of cases, makes this ve

Determine in detail about the credibility factor Let us consider, 'credibility' factor. The law, institutions and other created authorities lead to circumstances that can assur

how many articles are in the Uniform Commercial Code

Determine the central feature of politics Indeed this manipulation is a central feature of politics: "Problem definition is the active manipulation of images of conditions by c