a) Introduction

Corporation is defined as a legal entity separate from its owners made up of individuals, groups or
other corporations that has the power to conduct business and own property, assets and liabilities.

Corporation is a firm that meets certain legal requirements to be recognized as having a legal
existence, as an entity separate and distinct from its owners.

In other ward corporations can also be defined as a business organization created by an Act of
Parliament and responsible for day-to-day operation for public enterprises.

Corporations can be for profits as businesses are or non-profit as charitable organizations typically
are.

There are different types of corporations as explained below;

Corporation sole which is constituted by one person who has been corporated by law such as
Administrator General and Attorney General. It can also be called a Sub-chapter S corporation.

Corporation aggregate which is constituted by a group of individuals such that they can act, sue or
be sued or contract or hold property in the name of that group. It can also be called a sub-chapter C
corporation.

Limited liability company (LLC) is a corporation that has full responsibility for all of its legal and
financial obligations. That is the shareholders are only liable for; money owing on their shares.

In Uganda legal entities are incorporated under the company’s Act, Cap. 110.
b) public corporation is a body created by an act of parliament or legislature; these corporations are
treaded both as public authorities and as commercial concerns.as public authorities, they are
subjected to the normal control of the constitution and administrative law, supervision by the
minister who is in-turn answerable to parliament and by courts to rule the control which they excise
over administrative authorities.

Examples of government purely owned corporations in Uganda are;

Civil Aviation Authority (CAA) which is to direct and regulate Air transport industry in Uganda.

Electricity Regulatory Authority (ERA) which regulates the generation, transmission, sell, export,
import and distribution of electrical energy in Uganda.

Inspectorate of Government which promotes good governance through enhancing accountability,

transparency and enforcement of the rule of law and administrative justice in public offices.

Uganda Revenue Authority (URA) which deals with the revenue service like collecting,
accountability.

Public corporations can be classified according to functions for which they are created and the
following are the classification of public corporations;

Development corporations. These are setup to promote the development of a sector of the
economy. For instance, the Uganda Wildlife Authority, Uganda Revenue authority and National
Agricultural Research Organization.

Development Corporations can also be setup to provide public utilities like National water and
Sewage Corporation and Uganda Railways.

Regulatory Corporations. These corporations are setup specifically to perform the role of a
regulator. For example, Uganda land commission which is setup with the purpose of granting,
alienating and controlling public land on behalf of the government. The National Drug Authority
which is setup to regulate the manufacture, importation and sell of pharmaceuticals in the country.

Finance corporations. These provide a market place for money and assets so that capital can be
efficiently allocated to where it’s most useful in the country. For example, the Bank Of Uganda,
Uganda Development Bank and the National Insurance Corporation which takes in customer
deposits and lends the money to borrowers.

Statutory Corporations. These corporations are created by the state and their precise nature varies
by jurisdiction thus they might be ordinary company corporations owned by the government with or
without other shareholders.

They might also be a body without shareholders that are controlled by the national or sub-national
government.

Trading corporations: which were later replaced by Uganda advisory board of trade, these co-
ordinates and supervise trading limited reliability companies which have been privatized.

Education culture public amenities corporations. These also play a big role in implementing
educational policies of the country for example Law Development Centers (LDC) Makerere University
Uganda Wildlife Training Institute and corporation management facilities such as Museum and
Stadia for example Trustees of the National Cultural Centre and Trustees of Nakivubo War memorial
Stadium Trust.
Advantages of public corporations are as follow;

Bold management due to operational autonomy. A public corporation enjoys internal autonomy as
it is free from government control since it can run in a business-like manner. Management can take
bold decisions involving experimentations in its lines of activities taking advantage of business
situations for example Uganda Broadcasting Corporation enjoys considerable, flexibility and
independence in its corporation.

Protection of public interest. Public corporations promotes, formulate and implement policies
hence improving the public welfare. For example, the National drug authority ensure quality, safe
and efficient human and veterinary medicines and other healthcare products through regulating and
controlling their production, importation and the distribution and use. Hence promoting and
protecting public interests

Red tapism can be minimized whereby in public corporations red tapism and bureaucratic delays are
minimized to a great extent. A file does not need to pass through different levels of bureaucracy as
in a departmental undertaking.

Speedier decisions since bureaucracy and red tapism are reduced to considerable extent in public
corporation, quick decisions can be taken. Delays in decision making is avoided and therefore
bureaucracy aproblems can be resolved faster opportunities can be tapped in a better manner and
overall functioning of the organization is improved.

They also help in the erasing of the raising funds since public corporations are government owned
statutory bodies, they can raise the required funds by issuing bonds. For example Kampala capital
city authority (KCCA) usually issues bonds therefore they do not need entity to depend on the
government for their financial requirements.

Corporative prices where profits are not the primary motive of public corporations so it does not to
strive to charge high prices to maximize the profits. Since it is basically formed to serve the public
interests, such lower prices benefit the general public and more number of people are able to
consume the services of public corporations.

Employee welfare as public corporations follows its own recruitment policy and it can recruit the
best talents and provide them with appropriate training. Better perks and amenities can be provided
to the employees which improves on their motivation levels. Through these measures its able to
maintain a health employer – employee relationship, attract and retain talents and improve
productivity.

Economies of scale since they operate on a large scale,corporations can reap the benefits of the
economies of the scale. The benefits derived from economies of scale which can be passed onto the
general public in form of cheaper prices, stable prices and better quality service.

Conclusion

In conclusion, public corporations in Uganda’s public service are incorporated under the companies’
Act,Cap.110 are known as companies and they are normally incorporated by specific Acts of the
parliament. For example, Uganda Development Corporation Act, Cap.326 of the Uganda
Development Corporation Bill.2014.