12 September 2011
Companies and Corporation both are governed by the Companies Act,1956. Corporations are formed under special act for Example-All State Financial Corporations, say, West Bengal Industrial Developement Corporation of India.
Basically both are companies but the corporation status is perceived mainly in relation with 100% government companies or subsidiaries of government companies or government, its agencies, its authorities or its institutions being the major shareholders.
In modern times, both the entities are mainly limited liability companies and governed by the provisions of the Companies Act, 1956 or the provisions of the Special Act, as the case may be. Corporations are governed by the Special Act under which it has been formed in addition to Companies Act, 1956.
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