The following Demerits could be traced in the working of Government Companies.


The following setback could be traced in the working of Government Companies.

1. Absence of freedom of operation:

The superiors of the companies do not get a free hand in decision making.


2. Chance of misuse of power:

The authority and powers are likely to be misused by the superiors and directors of the Government Companies.

3. Restricted growth:

The Companies show slower growth potentials when decisions are not promptly taken.


4. Political interference:

Predominantly the political powers or vested interests interfere in the operations of the Government Companies.

5. Inefficiency in administration:

The officials appointed are salaried employees and thus will not take initiative in managing the affairs of the organisation properly.

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