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5 limitation of financial institutions

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5 limitation of financial institutions

Posted by Neha Singh 6 years, 11 months ago

CBSE > Class 11 > Business Studies

1 answers

Yogita Ingle 6 years, 11 months ago

Restriction on dividend payment imposed on the powers of the borrowing company by the financial institutions.
As these institutions come under government criteria, they follow rigid rules for granting loans. Too many formalities make the procedure time-consuming
Financial institutions may have their nominees on the Board of Directors of the borrowing company thereby restricting the powers of the company.

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