Creature of statute
Encyclopedia
Creatures of statute are legal entities, such as corporation
s, created by statute
. Creatures of statute may include municipalities
and other artificial legal entities or relationships. Thus, when a statute in some fashion requires the formation of a corporate body—often for governmental purposes—such bodies when formed are known as "creatures of statute." The same concept is also expressed with the phrase "creature of the state."
The term "creature of statute" is most common to the United States
. In the United Kingdom
, these bodies are simply called statutory corporation
s (or statutory bodies) and generally have some governmental function. The United Kingdom Atomic Energy Authority
is an example. In a wider sense, most companies in the UK are created under statute since the Companies Act 1985
specifies how a company may be created by a member of the public, but these companies are not called 'statutory corporations'. Often, in American legal and business documents that speak of governing bodies (e.g., a board that governs small businesses in China) these bodies are described as "creatures of statute" to inform readers of their origins and format although the national governments that created them may not term them as creatures of statute. Australia
also uses the term "creature of statute" to describe some governmental bodies.
The importance of a corporate body, regardless of its exact function, when such a body is a creature of statute is that its active functions can only be within the scope detailed by the statute which created that corporation. Thereby, the creature of statute is the tangible manifestation of the functions or work described by a given statute. The jurisdiction of a body that is a creature of statute is also therefore limited to the functional scope written into the laws that created that body. Unlike most (private) corporate bodies, creatures of statute cannot expand their business interests into other diverse areas.
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
s, created by statute
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
. Creatures of statute may include municipalities
Municipality
A municipality is essentially an urban administrative division having corporate status and usually powers of self-government. It can also be used to mean the governing body of a municipality. A municipality is a general-purpose administrative subdivision, as opposed to a special-purpose district...
and other artificial legal entities or relationships. Thus, when a statute in some fashion requires the formation of a corporate body—often for governmental purposes—such bodies when formed are known as "creatures of statute." The same concept is also expressed with the phrase "creature of the state."
The term "creature of statute" is most common to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. In the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, these bodies are simply called statutory corporation
Statutory Corporation
A statutory corporation or public body is a corporation created by statute. While artificial legal personality is almost always the result of statutory intervention, a statutory corporation does not include corporations owned by shareholders whose legal personality derives from being registered...
s (or statutory bodies) and generally have some governmental function. The United Kingdom Atomic Energy Authority
United Kingdom Atomic Energy Authority
The United Kingdom Atomic Energy Authority is a UK government research organisation responsible for the development of nuclear fusion power. It is an executive non-departmental public body of the Department for Business, Innovation and Skills and was formerly chaired by Lady Barbara Judge CBE...
is an example. In a wider sense, most companies in the UK are created under statute since the Companies Act 1985
Companies Act 1985
The Companies Act 1985 is an Act of the Parliament of the United Kingdom of Great Britain and Northern Ireland, enacted in 1985, which enabled companies to be formed by registration, and set out the responsibilities of companies, their directors and secretaries.The Act was a consolidation of...
specifies how a company may be created by a member of the public, but these companies are not called 'statutory corporations'. Often, in American legal and business documents that speak of governing bodies (e.g., a board that governs small businesses in China) these bodies are described as "creatures of statute" to inform readers of their origins and format although the national governments that created them may not term them as creatures of statute. Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
also uses the term "creature of statute" to describe some governmental bodies.
The importance of a corporate body, regardless of its exact function, when such a body is a creature of statute is that its active functions can only be within the scope detailed by the statute which created that corporation. Thereby, the creature of statute is the tangible manifestation of the functions or work described by a given statute. The jurisdiction of a body that is a creature of statute is also therefore limited to the functional scope written into the laws that created that body. Unlike most (private) corporate bodies, creatures of statute cannot expand their business interests into other diverse areas.