I have always felt good each time I realize that I have a class with you guys , seeing your enthusiasm of learning everyday and improving your intelligent quotient. Today, we shall be looking at public corporation, features , reasons for establishment among others.
Public corporation may be defined as an enterprise established by act of parliament .
This public corporation is established basically to provide essential services for the citizens of that particular country. In Nigeria here , we have railway, federal radio corporation, ports Authority, National Electric power Authority. Etc.
This corporation is headed by board of directed , and in the board is chairman who is saddled with the responsibility of seeing to the provision of social Amenities.
CHARACTERISTICS OF PUBLIC CORPORATION.
its owned by the government, also controlled by the government appointee as well .its not owned by individuals or private organization.
For essential services.
It’s also created by act of Parliament.
It has legal standing , this means that it could sue or be sued.
Board of directors: its organization is done by board of directors.
REASONS FOR SETTING UP PUBLIC CORPORATION.
The establishment of public corporation is basically for rendering and provision of social services at a reduced cost , known as incentives.
Raising people’s standard of living.
Provision of employment opportunities by employing youths in the various corporations in the country.
For efficient management and proper control.
Government agency has the know-how to manage human resources and potential.
Another reason for its establishment is to ensure economic growth that will stimulate the establishment of infrastructure and generate investments for both local and foreign businessmen.
Revenue generation; this seems to be the most important part of it all , as government agency can not function without revenue.
To prevent exploitation ; government agency doesn’t like the way private individuals exploits it workers, and for that decides to be in the sector of productions.
The last but not the list , is because of the huge capital outlay, the government sees the act of venturing into business of provision of basic amenities as the best thing to do.
Thanks for joining the class , next time we shall be looking at another topic that will be for the interest of all.