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 .
|Basis of Difference
|Joint Stock Company
|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.
|Co-operative Society is Comparatively cheaper
|Joint stock company involves many legal, lengthy complicated and costly process
|Main motto of a co-operative society is to provide services to members and secondary profit making
|Main motto of a Joint stock company is to earn profit and secondary is to providing services
|Transfer ability of Shares
|Shares are not transferable to other, though they can be surrendered to the society
|Shares are freely transferable in public limited company
|Minimum of 10 members are required and no mix mum limit for the formation of co-operative society
|At least 2 members are required for private company and maximum 50 members.public company has minimum 7 members and maximum not limit
|Managing 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
|Capital Raising capacity
|There is no capital appreciation and it can raise limited capital since the dividend is fixed
|Large capital raise since attractive dividend is paid and there is capital appreciation
|The principle of voting is one member one vote
|The principle of voting is one share one vote
|Managing committee works honorary capacity
Directors are paid fees for attending Board Meetings