Para 2.5.6 — MSO (Audit)
Original Rule Text
2.5.6 The Statutory Corporations, Boards, etc. are governed by the respective Acts of Parliament/State or Union Territory Legislature, which contain detailed provisions in regard to their scope and functions, etc. Specific provisions are usually made in the governing Acts for Parliamentary control over certain aspects like budgeting and audit and presentation of an annual report to the Parliament/State or Union Territory Legislature on the overall functioning of the concern.
What This Means
Statutory corporations, boards, and similar bodies are governed by their own specific Acts of Parliament or State Legislature, which define their scope, functions, and operations. These governing Acts usually include provisions for parliamentary control over budgeting and audit, and they require the entity to present an annual report to Parliament or the Legislature on its overall functioning.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Statutory corporations are governed by their respective establishing Acts
- 2The governing Acts define scope, functions, and operational framework
- 3Provisions for parliamentary control over budgeting and audit are usually included
- 4Annual report to Parliament or State Legislature is typically mandated
- 5Each corporation's governance is specific to its establishing legislation
Practical Example
The Food Corporation of India (FCI) is established under the Food Corporations Act, 1964. This Act defines FCI's mandate (procurement, storage, and distribution of foodgrains), its board structure, financial powers, and audit arrangements. The Act requires FCI to submit an annual report to Parliament covering its operations, finances, and achievements. The CAG audits FCI in accordance with the provisions of this specific Act.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How is a statutory corporation different from a government company?▼
Can Parliament modify the functioning of a statutory corporation?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.