|
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
|
Formation
of co-operative society is comparatively cheaper.
|
Formation
of a joint stock company involves many legal formalities. It is lengthy and
costly.
|
|
3.
|
Motive
|
The
main motto of a co-operative is to provide services to members. Profit making
is its secondary objective.
|
The
main motto of a joint stock company is to earn profit. Providing service is
the secondary motive.
|
|
4.
|
Transferability of
shares
|
Shares
are not transferable to other members though they can be surrendered to the
society.
|
Shares
are freely transferable in a public limited company. But it is restricted in
private limited company to a certain extent.
|
|
5.
|
Number of members
|
A
minimum 10 members are required for formation of a co-operative society
though there is no maximum limit.
|
The
minimum of number of members are 2 in private limited company and a maximum
of 50. In a public limited company, minimum number of members is 7 and there
is no maximum limit.
|
|
6.
|
Voting
Rights
|
The principle of voting is one member
one vote.
|
The principle of voting is one share
is one vote.
|
|
7.
|
Capital raising
capacity
|
It can raise limited capital since the
dividend is fixed and there is no capital appreciation.
|
It can raise large capital since
attractive dividend is paid and there is capital appreciation.
|
Co-operative Society Joint Stock Company
