Distinction between Statutory corporations and limited companies

Statutory Corporations

• These are incorporated associations created by statute. They owe their existence to an Act of Parliament.
• The Act provides them with a name and prescribes its objects
• The corporation is a body corporated with perpetual succession limited liability capacity to contract sue or be sued and own property.
• Examples include Agricultural Finance Corporation, Kenya Wildlife Services, Kenya Air Ports Authority Public Universities
• All state corporations belong to the state hence have one member.
• Interest may be transferred by the government.

Limited companies

• These are incorporated associations created by registration
• Promoters must comply with the Provisions of the Companies Act.
• On registration the association becomes a body corporate by the name contained in the memorandum of association.
• Their objects are prescribed by the memorandum of association.
• Their features are generally similar to those of statutory corporations
• However registered companies are different in that
• Membership is prescribed by law for example the minimum number of members is two for both public and private companies. However, where as the
  membership of a public company is unlimited, a private company cannot have more than 50 members unless the excess members are or have been employees of
  the company.
• Members interest in the company is transferable.
• Companies are managed by directors.
• There are two types of registered companies namely public and private.