HomeBusinessDiff between Departmental Undertaking & Statutory Corporation Diff between Departmental Undertaking & Statutory Corporation The following are some of the points of distinction between departmental undertaking and statutory corporation. Point of Distinction Departmental Undertaking Statutory Corportation 1. Status Does not have a separate legal entity. It is a Separate entity. 2. Establishment It is established by a Ministry. It is established by a Special Act of Parliament. 3. Funds Funds are Provided annually by budget appropriation. It can raise its own resources. 4. Authority to control Rests in the hands of the Minister and the concemed Ministry Parliament has the authority to control the affairs. 5. Management Managed by government officials and the ministry. Managed by the Board of Directors 6. Power to borrow Does not have borrowing power. Possesses borrowing power. 7. Employees Employees are govemment servants and service rules are those applicable to government employees. Employees are recruited by the Corporation. The employees are not government servants. 8. Autonomy Limited Considerable 9. Flexibility Limited Substantial 10. Suitability Suitable in industries which are basically monopolies. For e.g. defence, public utilities etc. Suitable for industrial and commercial undertakings. The above are some of the differences between departmental undertaking and statutory corporation. Related Posts 13 Main Causes for the Growth of Business Combination Statutory Meeting | Objectives | Statutory Report District Industries Centres | Objectives | Resources | Structure Role of Chief Executive Officer in Organization | Qualities Important point to be considered in selecting form of Business Organization Cooperative Enterprise | Meaning | Origin | Features | Principles Tags:Business organization, Undertaking Leave a Reply Cancel reply This site uses Akismet to reduce spam. Learn how your comment data is processed.