Public companies have some disadvantages over private companies because they are subject to greater levels of scrutiny from regulators and the public. Nonetheless some public company disadvantages cannot be overlooked. Advantages And Disadvantages Of Partnership Business Business Small Business Finance Business Finance 2 Widening the shareholder base and spreading risk. . The members assets will still be safe and sound when there is a bad financial condition in the company. Disadvantages of a Public Limited Company. A public company is required to observe several legal formalities. Advantages and Disadvantages of Sole proprietorship business 4. There is excessive Government control over public companies. Secondly it means that those who invest in the firm are protected from extreme loss if the company fails. One of the primary reasons is the owners can trade. A Public Limited Company PLC means first that t