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. No | Basis of Difference | Co-operative Society | Joint 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. | Formation | Co-operative Society is Comparatively cheaper | Joint stock company involves many legal, lengthy complicated and costly process |
| 3. | Motive | 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 |
| 4. | 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 |
| 5. | Members | 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 |
| 6. | Management | 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 |
| 7. | 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 |
| 8. | Voting Rights | The principle of voting is one member one vote | The principle of voting is one share one vote |
| 9. | Remuneration | Managing committee works honorary capacity |
Directors are paid fees for attending Board Meetings |