Executing agencies also rarely have legal competence to enter into contractual relationships with suppliers. Executing agencies deliver services where the public sector has a comparative advantage, but need to be placed in a clear accountability framework to a particular Ministry. Their objectives are often enshrined in a charter, and their functions are defined by legislation in addition to any powers of direction held by the Minister. They can also have legal competence to enter into contractual relationships. Such bodies tend to be established for regulatory purposes, although in some presidential systems they can also be service providers.
Statutory commissions provide arms length arrangements when checks and balances are required.
Countries have encountered particular difficulties with executing agencies and statutory commissions. You may also click here to view a list of questions and concerns that should be addressed when considering the establishment of an autonomous agency. Trading bodies also have a separate legislative existence. If established under commercial law, then their charter and functions are defined by articles of association. Trading bodies generally have full legal competence to enter into contractual relationships they can assume corporate liability and can be sued.