Statutory Company: Meaning and Definition

Meaning and Definition of Statutory Company

When a Company is incorporated/formed by passing a Special Act at the Legislature, it is called as a Statutory Company.
  • Though primarily they are governed under that Special Act, still the Companies Act, 2013 will be applicable to them.
  • These companies are formed mainly with an intention to provide the public services like gas, water, electricity, etc.
  • These companies are also known as the Statutory corporations or public corporations.
  • The examples of such companies in India would be : Reserve Bank of India, Food Corporation of India, Life Insurance Company etc.