THE NATIONAL RAILROAD PASSENGER CORPORATION--A MODERN HYBRID CORPORATION NEITHER PRIVATE NOR PUBLIC

Amtrak is a private stock corporation. It is also a "Quasi-public" corporation because, although privately owned, it is responsible to and relies on the government in order to provide a service for the general public. Legislation and case law have consistently treated railroads as public corporations. However congress has created Amtrak as a profit corporation. Its Board of Directors is made up of the Secretary of Transportation, nine members to be appointed by the President, three of whom are to serve as consumer representatives, and seven members elected by the shareholders. In contrast to straight forward private corporations, where the ultimate goal is the good of the corporation, here the goal is the good of the public. This places the Board of Directors in ambivalent roles serving two masters. Congress's creation of a hybrid corporation is intentional. It is reflecting a need for a strong and permanent public service corporation which has not yet found its ultimate form.

  • Corporate Authors:

    American Bar Association

    750 N. Lake Shore Drive
    Chicago, IL  United States  60611
  • Authors:
    • Adams, A
  • Publication Date: 1976-1

Media Info

  • Pagination: p. 601-609
  • Serial:
    • Business Lawyer
    • Volume: 31
    • Issue Number: 2
    • Publisher: American Bar Association

Subject/Index Terms

Filing Info

  • Accession Number: 00129609
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 14 1976 12:00AM