Crown corporation

Definition: A federal Crown corporation in Canada is a corporation established by the federal government to deliver public policy when the government feels that government departments, other levels of government or the private sector cannot adequately do so. A Crown corporation is wholly owned either directly or indirectly by the government.

While Crown corporations are instruments of public policy, many also operate in a business environment. Some Crown corporations are completely funded by government; others are self-sufficient or profit-making. Some Crown corporations have regulatory or quasi-regulatory functions.

On a day-to-day basis, Crown corporations operate at arm's length from the government. Each has a Board of Directors responsible for the strategic direction and management performance of the organization.

The government maintains a variety of powers to influence the direction of Crown corporations, including the ability to amend governing legislation a directive power which allows the responsible cabinet minister to provide direction to the Crown corporation's Board of Directors as long as notice is given to Parliament approval of corporate plans appointments to key positions approval and guarantee of financing.

View the original article here