Disadvantages   of joint -stock   companies

1. Shareholders do not exercise full   control over their business.   This is because; under joint stock companies management   differs from shareholders.
2. Shares are not equally owned.  Those with more shares tend to dominate decision making in line with their personal interests or benefits.
3. It is difficult to start a joint   stock company.   This is because   there is a need to present   several documents   to the registrar of companies   before the company is incorporated.
4. There is bureaucracy in decision   making.   This is because   there is need to consult   the various shareholders   before the action is taken.
5. There no secrecy in the running of the business.   For example   books of accounts   are published in the newspapers   especially for public limited companies.
6. High taxes are paid by shareholders. This is because taxes are paid on both company profits and dividends.
7. Rivals of the  public   company   can  easily buy  off  the  majority  shares  there   by  crippling   the activities  of the company.
8. There is little personal contact between the shareholders of the company and the customers.  This undermines   customer care services.                                                                                                                 ,.
9. There is lack of flexibility in business operations. This is because the company can only engage in activities which are stipulated in the constitution.

10. There is a risk of suffering from   diseconomies of scale.  This  is  as    a  result   of  large  scale operation  joint  stock companies   for example  lack of sufficient  markets,  raw materials   etc.