1. No statutory liability for companies to declare any dividends even if there are profits. This will leave govt. on the mercy of companies if they wish to give any share of profit whereas Corporate tax is statutory payment and is certain.
2. Currently Govt. acts as Regulator role via MCA, SEBI etc. If it starts holding stakes in the companies acting as owner, there will always be a case for 'Conflict of Interests' as govt will be both owner and regulator. Seems like a better option. Right?
