Distinguish Between Co-operative Society and Joint Stock Company

 Co-operative Society and Joint Stock Company

Maharashtra state HSC  Board – Organization of Commerce and management – Studies notes, study material,distinguish between, difference between Co-operative and Joint stock company .

Sr. NoBasis of DifferenceCo-operative SocietyJoint Stock Company
1.Meaning A Co-operative society is a voluntary association of people who come together on the basis of unity and equality to protect and promote their common economic interest. .It is voluntary association of individuals for profit having capital divided into transferable shares, the ownership which is the condition of membership.
2.FormationCo-operative Society is Comparatively cheaper Joint stock company involves many legal, lengthy complicated and costly process
3.MotiveMain motto of a co-operative society  is to provide services to members and secondary profit makingMain motto of a Joint stock company is to earn profit and secondary is to providing services
4.Transfer ability of SharesShares are not transferable to other, though they can be surrendered to the societyShares are freely transferable in public limited company
5.MembersMinimum of 10 members are required and no mix mum limit for the formation of co-operative societyAt least 2 members are required for private company and maximum 50 members.public company has minimum 7 members and maximum not limit
6.ManagementManaging committee is the managing body of co-operative society.Board of directors constitute the management of company. Directors run the business since they possess the required expertise
7.Capital Raising capacityThere is no capital appreciation and it can raise limited capital since the dividend is fixedLarge capital raise since attractive dividend is paid and there is capital appreciation
8.Voting RightsThe principle of voting is one member one voteThe principle of voting is one share one vote
9.RemunerationManaging committee works honorary capacity

Directors are paid fees for attending Board Meetings

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