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SS2 Second Term Government Lesson Note – Public Corporations

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WEEK 1

TOPIC: REVISION/PUBLIC CORPORATIONS

CONTENTS: (2) Structure and Organization

(a) Organizational Structure of public corporations: (i) Minister (ii) Board (iii) Management.

(b) Comparison of organizational structure of public corporation with civil service.

Sub-Topic 1: ORGANIZATIONAL STRUCTURE OF PUBLIC CORPORATION

The organizational structure of a public corporation is based on the law establishing it. Such law also specifies the aims and duties of the enterprise. The following are the structure and organization of public corporations:

  1. Minister: the government takes charge of the policy making machinery of each public corporation through the minister whose ministry supervises the corporation. The overall broad policies of the government are handed over to the board of directors for implementation. The supervising minister does not participate in the day-to-day administration of the corporation, but links the corporation with the government. He presents issues concerning the corporation in the executive council and makes sure the broad objectives of the government are catered for in the policies and programmes of the corporation.
  2. Board of directors: the board of directors is appointed by the government through the supervising minister. This body is responsible for policy matters involving the operations of the corporation and staff matters. Its members are usually chosen by the chief executive, that is, the president (for federal corporations) and the governor (for State Corporation). The board is headed by a chairman who reports to the minister or commissioner. The board makes all appointment. The minister indirectly controls the corporation through the board of directors.
  3. The Managing Director: the managing director is the administrative and executive head of the corporation and oversees the practical activities of the corporation’s area of operation.

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