Question

Distinguish between.

Co-operative Society and Joint Stock Company.

Answer 1

Points	Co-operative Society	Joint Stock Company
1. Meaning	A co-operative society is a voluntary association of individuals which is formed for providing services to members.	Joint Stock Company is an incorporated association created by law, having an independent legal status, owned by shareholders and managed by a board of directors.
2. Number of members	minimum ten members and the maximum number of members are unlimited.	private company has Minimum 2 and Maximum 200 members. A public company has Minimum 7 and Maximum No limit of members.
3. Capital	A Co-operative society has less capital as compared to a Joint Stock company.	Joint Stock company has large capital.
4. Management	Managing Committee manages Co-operative society.	Board of Directors manages the Joint Stock company.
5. Act	Co-operative Societies have to follow the Co-operative Societies Act, 1912. In Maharashtra, the societies have to follow Maharashtra State Cooperative Societies Act, 1960.	Companies have to follow the Indian Companies Act, 2013.
6. Formation	The formation of a Co-operative society is comparatively cheaper and easier.	The formation of a Joint Stock Company is costly, difficult, and time-consuming.
7. Voting right	The principle of “One member One vote” is followed.	The principle of “One share One vote” is followed.
8. Motto	The main motto of a Cooperative society is to give services to the people.	The main motto of the Joint Stock company is to make maximum profit.
9. Transferability of shares	Shares are not transferable. They can be surrendered to the society.	Shares of a Public Company are freely transferable.
10. Remuneration	Members of the Managing Committee work on an honorary basis.	Board of Directors are paid a salary and given fees for attending board meetings.
11. Area of Business	Normally, the co-operatives have a limited area of business.	Companies have a larger area of business operation.
12. Proxies	In a Co-operative society, proxies are not allowed in the meetings.	In a Joint Stock company, proxies are allowed to vote in the meetings.