Question

Distinguish between Co-operative Society and Partnership Firm. 

Answer 1

S. No.	Points	Co-operative Society	Partnership Firm
1.	Meaning	Co-operative Society is a voluntary association of individuals Which is formed for providing services to its members.	A partnership firm is formed by two or more persons to do business and share profits.
2.	Number of members	Minimum ten persons and maximum no limit.	Minimum two persons and a maximum of fifty persons.
3.	Registration	It is compulsory.	It is not compulsory in India, but compulsory is Maharashtra
4.	Liability	The liability of members is limited up to the extent of the unpaid amount on shares held by them.	The liability of partners is unlimited, joint, and several.
5.	Secrecy	It is not possible to maintain secrecy iii a Co-operative Society.	The company has huge capital.
6.	Management	Managing Committee manages the society according to its bye-laws.	All partners are involved in the management of the firm.
7.	Stability	Stability is not affected by death, insolvency, or lunacy of a member.	The stability of a firm is affected by death, insolvency or lunacy of a partner.
8.	Government Control	There is a lot of government supervision and control.	There is minimum government supervision for a partnership firm.
9.	Act	Co-operative Societies have to follow the Indian Co-operative Societies Act, 1912. In Maharashtra, societies have to follow the Maharashtra Co-operative Societies Act, 1960.	Partnership firms are governed by the Indian Partnership Act, 1932.
10.	Motive	The motive is to give maximum services to the people.	The motive is to earn profits.
11.	Legal Status	A Co-operative Society enjoys an independent legal status, distinct from its members.	Partnership firms do not have an independent legal status. Partners and the firms are one and the same.
12.	Transfer of shares	Members can surrender shares to society.	Partners cannot transfer the shares without the consent of other partners.