ABSTRACT
Public corporations are bodies with their own legal entity created by statute in most instances, normally without the status of Crown servant or agent, to undertake functions of concern to and subject to some control by government. While a good deal of what follows relates to public corporations some reference is made to the process of privatisation and the development of so-called ‘Next Step’ executive agencies. A well-known example of privatised industry is included in the reference to the privatised British Steel. While this example relates to what may be described as ‘total’ privatisation through the flotation of a conventional company, some examples may be referred to as ‘qualified’ privatisations. The privatisation of the water industry through the Water Act 1989 (now provided for through the Water Industry Act 1991) is notable on two counts. First, those companies that are chosen as the new water and sewerage undertakers have to comply with fairly extensive statutory requirements relating (for example) to prices and quality of service. Secondly, the law on insolvency in the Insolvency Act 1986 is modified in order to provide a rather more generous safety net for the companies that may find themselves in financial difficulty in providing this fundamental commodity. The same insistence on a strict statutory framework is seen in the coverage of the privatised electricity industry, described below.
