The following are the merits of Government Companies

The following are the merits of Government Companies

1. Ease of formation:

These Companies can be easily formed without many legal formalities being followed.

2. Flexibility in operation:

The Government Companies enjoy operational flexibility and have scope for changes and improvements.

3. Prompt decisions:

Quick and prompt decisions may be taken as the formalities are limited.

4. Absence of Government interference:

Though it is formed by the Government, it is not influenced by any Government Department.

5. Greater efficiency:

Since the directors are nominated by the Government, the managerial efficiency of the directors is good. The work is also executed by efficient workers as the selection procedure of workers is quite strict.