Question

there is more government control and supervision over working of joint stock company​

Answer 1

Justification of the statement ''There is more government control and supervision over working of joint stock company''​ is as follows:

• Through economic legislation and Companies Act, government regulates Joint stock companies.
• Joint stock company refers to a large scale business organisation. This includes huge resources, wealth and economic power.
• This also has a supervisory authority.
• Supervisory board must be obligatory appointed in a joint stock company. Proxy may also represents joint stock company.

Answer 2

It is true that there are more government control and supervision overworking of the joint-stock company. Every company should follow the provisions of the Companies Act, 1956 and adhere to the various rules and regulations that are introduced from time to time by the government agencies, SEBl and more.

Explanation:

• The Company and its officers are required to follow the rules and legislation provided by the government.  

• If they do not follow these then they have to face punishment and pay penalty for noncompliance with the provisions of rules.  

• In certain cases if the provisions are not followed by the company then the court can even ask the company to close their business or debar them from certain activities.  

• The companies also have to periodically submit different documents and reports to different authorities and also publish their annual accounts and annual reports every year.