Meaning and characteristics of public or state corporations
Answer Text: PUBLIC CORPORATIONS (STATE CORPORATIONS)-These are organizations formed by and/or controlled by the government (the government has a controlling interest). This means that the government owns more than 50% shares in the corporation. Where the government has fullownership, the organization is known as a parastatal.-They are formed to perform a specific function on behalf of the government.Examples:-Kenya Railways corporation- provides railway transport-Telkom Kenya-provides telecommunication services-Postal corporation of KenyaCharacteristics/features of public corporations-They are formed by the government under the existing laws i.e formed by an act of parliament -Initial capital is provided by the government-They are jointly owned by the government and members of public/private investors-They are set up to perform certain specific functions on behalf of the government-They are managed by a board of directors appointed by the government or appointed by the government and the joint owners-They have an entity of their own and can own property, enter contracts, sue and be sued-They have limited liability-Some operate without a profit motive while others have a profit motive