distinguish between company and co-operative society
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. Introduction
Cooperative Society: Type of business organization formed and operated by like minded people in the society to achieve economic and social benefit.
Joint Stock Company: Type of business organization owed and operated by association of persons (shareholders and promoters) with the motive of earning large amount of profit.
2. Formation And Registration
Cooperative Society: Minimum 25 members are required to form cooperative society. It is registered according to the Cooperative Act of the country,
Joint Stock Company: 1-7 members are required to form to register company. It is registered and regulated by the Company Act of the country.
3. Formation Process
Cooperative Society: Formation and registration process is easy, less time consuming and less costly because of less legal formalities.
Joint Stock Company: It is complex, time consuming and costly process because of several steps and various legal formalities.
4. Objective/Purpose
Cooperative Society: Providing services to members and fulfilling social, economic and cultural needs of the society.
Joint Stock Company: To earn significant amount of profit.
5. Middlemen/Intermediaries
Cooperative Society: It eliminates the role of middlemen and intermediaries in the business.
Joint Stock Company: Middlemen and intermediaries play major role in the business of joint stock company.
6. Profit Motive Or Service Motive
Cooperative Society: Service motive and promotion of common welfare
Joint Stock Company: It is profit motive organization and seeks to earn higher profit.
7. Government Privilege And Control
Cooperative Society: Special privilege and less government control
Joint Stock Company: Less government privilege and strict control and regulation
8. Share Transfer
Cooperative Society: Members cannot transfer or sell their shares to others but they can withdraw
Joint Stock Company: Share are transferable
9. Proxy Allowed Or Not
Cooperative Society: No
Joint Stock Company: Yes
10. Types Of Customers
Cooperative Society: Mostly, members are also the customers of cooperatives
Joint Stock Company: Sellers and customers are different