NAME- MEHAK SHARMA

CLASS- BA.LLB 2ND YEAR

ROLL NO- DY22LAWU0ALL012
SUBJECT- ADMINISTARTIVE LAW
PROFFESOR- ADV. KEVIN TAURO
 EXPLORING CORPORATIONS AND PUBLIC UNDERTAKINGS
THROUGH THE LENS OF ADMINISTRATIVE LAW

OBJECTIVES
1. To study the historical development and contemporary roles of public enterprises and
enterprises in various sectors and jurisdictions.
2. Analyze the legal framework, regulatory environments and administrative structures
guiding the activities of state enterprises and communities.
3. Assess the challenges faced by public undertakings and corporations, including issues of
bureaucracy, political interference, financial sustainability and transparency, and propose
strategies to address these issues.

RESEARCH QUESTION
What are the key historical, legal and operational factors that influence the roles, challenges
and governance of public companies and corporations in the modern economy?

RESEARCH METHODODLOGY
The research approach used in this research is mainly based on qualitative analysis of various
aspects of public undertakings and corporations.That revolved around the meaning of public
undertakings and corporations, different types of public undertakings and corporations, the
historical evolution and the challenges and criticisms faced by the public undertakings and
corporations Various articles, journals, gazette, and research studies have been used to collect
liable information regarding the public undertakings and corporations to form the research.

LITERATURE REVIEW
INTRODUCTION
Public undertakings are organizations that are fully or partially owned by the government or
by public authorities at various levels, such as union, state or local government bodies. They
often aim to provide public facilities to the society that includes transportation,
telecommunications, healthcare, education and infrastructure developments. The
development and operations of public undertakings are results of specific public policy
guidelines that includes promotion of social welfare, ensuring universal access to essential
services, fostering economic development, etc. public undertakings are often asked to operate
with transparency and accountability because of its distinct feature of public ownership and
influence. They are expected to release their financial statement, audit reports and hold public
meetings for better transparency and accountability.
Corporations on the other hand refers to the entities that have been established to operate
within the ambit of administrative regulations and oversight. These include both profit and
non-profit organizations which are subjected to specific legal and regulatory frameworks
presented by the administrative agencies. They are such legal entities that are separated from
their owners or members. The formation and operations of the corporations are greatly
depended upon the administrative laws and regulations. Such regulations often include
requirements for incorporation, filing of documents, governing structures, financial reports
and compliance with particular industry standards. Corporations often come under the
jurisdiction of administrative agencies, depending on the nature of the corporation’s
operations. For e.g. Securities and exchange commission, the Federal trade Commission,
Environmental Protection Agency, etc.

HISTROICAL EVOLUTION
PUBLIC UNDERTAKINGS
The historical evolution of public undertakings and corporations reflects the changing status
of economic, political, and social systems over time. The ancient roots of public undertakings
date back to the ancient civilizations where the government or the ruling powers undertook
projects for the welfare of the people. This welfare often included the infrastructure
development, irrigation systems and public works which aimed at increasing the standard of
living of the people. During the ancient Rome era the main welfare work included the
development of roads and public buildings to ensure the functioning of the urban city centers.
In the medieval period, public undertakings continued to play an important role in the
provision of necessary services and infrastructure. The Monarchs and local government
bodies were responsible for the proper facilitation of such infrastructure and defending the
territories. Taxes, tolls and levies were imposed on the population in order to achieve these
infrastructure goals.
During the 18th and 19th century the modern aspects of public undertakings began to shape
because of the industrial revolutions. Because of the increase in industries the government
then realized the need to intervene in the key sectors of the economy with the aim of
promoting economic developments, address the social discriminations, healthcare, education
and welfare programs.
By the start of the 20th century, public undertakings became a crucial part of the nation’s
economies, particularly in the west and other industrialized nations. This led to the promotion
of nationalization of sectors like energy, telecommunications and transportations.

CORPORATIONS
The historical development of companies is closely related to the development of trade,
commerce and finance. Early forms of corporations can be traced back to ancient civilizations
where collective entities were formed for trade, construction, and religious purposes. In
medieval Europe, corporations arose as entities empowered by monarchs or magistrates to
regulate trade, control guilds, and control municipal resources.
The rise of joint stock companies during the Renaissance and early modern times
revolutionized the business world, allowing investors to pool capital in business ventures and
foreign exploration. This led to the establishment of powerful trading companies such as the
Dutch East India Company and the British East India Company, which played an important
role in global trade and colonization.
The Industrial Revolution in the 18th and 19th centuries meant a time of rapid growth for
businesses, especially in industry, transportation and finance. Advances in technology,
urbanization, and changes in work and production methods encouraged the growth of large
industrial enterprises, including monopoly funds and conglomerates. This era also saw the
birth of corporate giants such as Standard Oil and the United States. Steel that dominated
their respective industries.
Throughout the 20th century, companies continued to evolve in response to changing market
dynamics, regulatory environments, and consumer preferences. The rise of multinational
corporations, advances in business management, and changes to a service-based economy
have shaped the world of business around the world. Today, companies all over the world
play a key role in shaping the economy, promoting innovation and social and environmental
policy.

TYPES OF PUBLIC UNDERTAKINGS AND CORPORATIONS

Public undertakings include Government- owned Enterprises, Public Corporations, Public-
Private Partnerships, Statutory Bodies and Agencies, Municipal and Local Government
Undertakings, Development Financial Institutions.
A] GOE are bodies that are fully owned by the government authorities at the national, state
and local level. Their main operations are in various sectors such as transportation, energy,
telecommunications, healthcare, education and infrastructure development.
B] Public Corporations are enterprises that are established by statute or charter in order to
perform specific functions while providing services on the behalf of the government. They
are separated from the government entities and have autonomy over their board of members
C] Public- Private Partnerships are conjointly owned by the public and private entities with
the goal of development and providing the public with infrastructure. They are the
combination of public sectors’ oversight and private sectors’ expertise, resources and
investment.
D] Statutory Bodies and Agencies fulfil particular regulatory, administrative, functions.
They are established by the legislation and have full authority over regulations, enforcing
laws and looking in various aspects of industries.
E] Municipal and Local Government Undertakings provide basic services to the local
communities in order to meet with their needs. For e.g.- waste management, sewerage
management, public health and infrastructure.
F] Development Financial Institutions are established by the government with the view of
promoting economic development, facilitate investment, and support various beneficial
sectors of the economy. They are special financial institutions that have proven to be helpful
to the government.

Corporations include profit corporations, non- profit corporations, publicly traded

corporations, professional corporations and multinational corporations.
A] For- profit corporations are corporations whose main aim is to generate profits for the
stakeholders and owners.
B] Non- Profit Corporations main purpose is separated from profit generation and its sole
purpose is to pursue charitable, educational, religious or social welfare objectives.
C] Publicly traded Corporations are companies established for the common people to
invest their money in the stocks of such company.
D] Professional Corporations are specified corporations which engage in professional
services like finance, medicine, law, etc.
E] Multinational companies are international companies with their multiple offices across
international borders with its headquarters.

CHALLENEGES AND CRITICISM

Time and again the public undertakings and corporations have faced various challenges and
criticisms surrounding the bureaucracy, political interference, financial sustainability, lack of
transparency and accountability, inadequate government lookout, social impact, etc
Many a times decision making is a slow process and their lack of speediness can lead to
inefficiency to innovate and adapt to the changing market stipulations. The additional
influence of political aspect makes the corporations and public undertakings susceptible; the
pressure of politics often influence the decision making based of the political considerations
rather than economic and public welfare along with the changing market dynamics. Due to
requirements of high capital investments, public undertakings may face challenges of
financial sustainability and profitability. Some of the public undertakings and corporations
may have low transparency and accountability mechanisms which are necessary to keep the
general public updated about their functioning. Inadequate management structures and
control mechanisms leave entities open to risks such as fraud, mismanagement and conflict of
interest, further undermining organizational integrity. Finally, the study of social and
environmental impacts is also constantly increasing, requiring even greater attention to
corporate social responsibility and sustainable practices.

FINDINGS
In short, it can be said that state-owned enterprises and enterprises represent important pillars
of the modern economy, which perform key tasks and accelerate social development. Despite
challenges such as bureaucracy, political interference and sustainability considerations, these
units play a key role in service delivery, promoting economic development and promoting
social well-being. By increasing transparency, accountability and sustainability, SOEs and
corporations can effectively fulfil their roles and promote the well-being of societies. It is
imperative that stakeholders work together to address these challenges to ensure the
continued success and impact of these entities in an ever-evolving global environment.