Excessive Government Control
A company is subject to elaborate statutory regulations in its day-to-day operations. It has to submit periodical reports. Audit and publication of accounts is obligatory. The object and capital of the company can be changed only after fulfilling the prescribed legal formalities. These rules and regulations reduce the efficiently and flexibility of operations. A lot of precious time, effort and money has to be spent in complying with the innumerable legal formalities and irksome statutory regulations.
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