Disadvantages of Private Joint-stock Companies:

(i) A shareholder cannot transfer his/her shares in this type of business organization without the other shareholders agreeing to it.

(ii) Because membership is limited to fifty there may be a limit to the capital they can contribute.

(iii) The private joint-stock company cannot raise capital from the public through the sale of shares.

(iv) Unlike public joint-stock company, business risk is spread among a limited number of people with fifty as maximum.