(b) Identify four ways in which Public corporations are controlled.
(a) A Public Corporation is a type of legal entity that is established by a government to carry out public functions or services, usually in areas such as transportation, utilities, or other public infrastructure. These corporations are owned and controlled by the government and operate under a set of rules and regulations that are set by the government.
(b) Public corporations are controlled in several ways, including:
Government Oversight: Public corporations are subject to oversight by government agencies or regulatory bodies. These agencies monitor the corporation's activities to ensure that they are acting in the public interest and complying with relevant laws and regulations.
Board of Directors: Public corporations have a board of directors that is appointed by the government. The board is responsible for overseeing the corporation's management, setting policies and strategies, and making major decisions.
Annual Reports and Audits: Public corporations are required to prepare annual reports that provide information about their financial performance and operations. These reports are audited by independent auditors to ensure that they are accurate and comply with relevant accounting standards.
Shareholder Meetings: Public corporations may have shareholders who own shares in the corporation. Shareholders have the right to attend annual meetings and vote on major decisions, such as the election of directors or the approval of major transactions. However, in the case of public corporations, the government usually holds the majority of the shares and therefore has the controlling interest.
Overall, public corporations are subject to a range of controls and regulations that are designed to ensure that they operate in the public interest and provide services or functions that are essential for society.
(a) A Public Corporation is a type of legal entity that is established by a government to carry out public functions or services, usually in areas such as transportation, utilities, or other public infrastructure. These corporations are owned and controlled by the government and operate under a set of rules and regulations that are set by the government.
(b) Public corporations are controlled in several ways, including:
Government Oversight: Public corporations are subject to oversight by government agencies or regulatory bodies. These agencies monitor the corporation's activities to ensure that they are acting in the public interest and complying with relevant laws and regulations.
Board of Directors: Public corporations have a board of directors that is appointed by the government. The board is responsible for overseeing the corporation's management, setting policies and strategies, and making major decisions.
Annual Reports and Audits: Public corporations are required to prepare annual reports that provide information about their financial performance and operations. These reports are audited by independent auditors to ensure that they are accurate and comply with relevant accounting standards.
Shareholder Meetings: Public corporations may have shareholders who own shares in the corporation. Shareholders have the right to attend annual meetings and vote on major decisions, such as the election of directors or the approval of major transactions. However, in the case of public corporations, the government usually holds the majority of the shares and therefore has the controlling interest.
Overall, public corporations are subject to a range of controls and regulations that are designed to ensure that they operate in the public interest and provide services or functions that are essential for society.