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.

See Also:

• Index of Federal Crown Corporations in Canada