Public corporation

Updated: Aug 20, 2021

The thin end of the nationalization wedge. Rather than directly nationalize an industry the government reserves the option of making it a public corporation. Although such a body enjoys theoretical autonomy it is still ultimately responsible to the government from which its funds derive. Its accounts are published for public perusal and it is accorded the quasiofficial status of managing its own affairs, even to the extent of raising capital directly from the public in whose interest it ostensibly acts. Nonetheless, it is effectively controlled by a government department and its autonomy is severely limited. Good examples of public corporations are the Post Office and National Savings Bank.

Reference: The Penguin Business Dictionary , 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.