Disadvantages of Public Joint-stock Company:

i. Difficult to form: Due to the need to produce a lot of documents and procedures before the company is incorporated, it is difficult to form and not all persons can engage in it.

ii. Since those responsible for the running of the business (Board of Directors) may not be the owners, interest and personal involvement may be low.

iii. Shareholders who are owners of the company have little control over policy.

iv. Large size of business makes it difficult to monitor activities of all employees.