Justify the following statement:

There is more Government control and supervision over the working of a Joint Stock company.

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1 Answers

  • A Joint Stock Company is controlled and supervised by the Government.
  • A company has to follow numerous provisions of the Companies Act and other Acts.
  • The company has to follow all rules and regulations of the Government.
  • If any of the legal provisions are violated, various charges are levied on the company.
  • Government control protects the financial interest of a large number of investors.
  • If any of the business of a company is carried out illegally, strict actions are taken by the Government authorities on the working of the company.
  • So, there is more Government control and supervision over the working of Joint Stock companies.

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