Question

explain the reason for the following in a joint stock company option a) lack of secrecy b)numerous regulations c) delay in decision d)oligarhic management i need all of then in detail plz ​

Answer 1

Answer:

a) according to the company act 2013, all Public companies have to provide their financial records and other related documents to the registrar. these documents are then public documents , which any member of the public can access. this lead to complete lack of secrecy for the company

b) numerous regulations- a company is subject to many legal provisions and compulsion in respect of aspects including audit,voting,filing of reports and prepration of documents, and is required to obtain various certificates from different agencies,viz.registrar ,SEBI etc. all this process is time consuming and expensive and reducing the freedom of operation.

c) in a joint stock company,there would be many levels of hierarchy. approval has to be obtained at different levels and different departments before a final decision can be taken. there will be great delay in making decisions . as a result, profitable opportunities May be missed.

d) a few rich person may secure control over the affairs of the company. thus , the management of a joint stock company might become oligarhic in character.