Crown corporations, in theory, operate on a day-to-day basis at arm's length from the political control of government. Direct control by government is exerted only over the corporation's budget and the appointment of its chairperson and directors.
In Canada, Crown corporations are operated both by provincial governments and the federal government, as a means to pursue economic and social objectives. Canadian Crown corporations are used to control everything from the distribution, use, and price of certain goods and services, to energy development, resource extraction, public transportation, cultural promotion, and property management. They are also frequently used to give governments access to financial markets to provide financing for development and capital projects.
One of the most significant Canadian Crown corporations of the 20th century in terms of its number of employees, and its far-reaching impact into the everyday lives of Canadians, was the Canadian National Railway. Other significant Crown corporations have included CBC, VIA Rail, Air Canada, and Marine Atlantic.
In exchange for the charter, a corporation was obligated to obey all laws, to serve the common good, and to cause no harm.
Once corporations were legally defined as "natural persons", they automatically were endowed with the same "Bill of Rights" as human beings, and so came to possess and then exploit with devastating consequences, the same "rights" of the freedom of speech, and the ability to participate in elections and lobby elected officials.
Section 1101, which specifies that corporations that act contrary to the public policy of the state are subject to dissolution.
A central rationale of crowncorporations is that the commercial activities of government, to be performed successfully, must be shielded from constant government intervention and legislative oversight.
In Canada, the reform of crowncorporations is proceeding along 2 different courses - the establishment of revised regimes of control and accountability and more controversially, "privatization." In 1984 with the passage of Bill C-24, the federal government replaced the 1951 provisions of the FAA with a new legislative framework.
A related proposition is that many crowncorporations have outlived their usefulness as policy instruments and ought to be sold to the private sector.
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