Distinguish between joint stock company and co-operative society.

Question

Accepted Answer

| Basis | Joint Stock Company | Co-operative Society |
|---|---|---|
| **Governing law** | Companies Act, 2013 | Maharashtra Co-operative Societies Act, 1960 |
| **Main motive** | To earn profit | To render service / mutual help |
| **Minimum members** | Private 2 / Public 7 | 10 |
| **Voting rights** | By shares held (one share, one vote) | One member, one vote |
| **Control** | By capital (large shareholders/Board) | By members democratically |
| **Membership** | Based on buying shares | Voluntary, open, non-discriminatory |
| **Distribution of surplus** | Dividend on shares held | Limited dividend + bonus on dealings |
| **Transfer of interest** | Shares freely transferable | Restricted, needs society's approval |
| **Government control** | Regulation under Companies Act | Close supervision by the Registrar | …

Q.Distinguish between joint stock company and co-operative society.

Concept understanding — Co-operative Society

Types of Co-operative Societies

Types of Co-operative Societies

Basis	Joint Stock Company	Co-operative Society
Governing law	Companies Act, 2013	Maharashtra Co-operative Societies Act, 1960
Main motive	To earn profit	To render service / mutual help
Minimum members	Private 2 / Public 7	10
Voting rights	By shares held (one share, one vote)	One member, one vote
Control	By capital (large shareholders/Board)	By members democratically
Membership	Based on buying shares	Voluntary, open, non-discriminatory
Distribution of surplus	Dividend on shares held	Limited dividend + bonus on dealings
Transfer of interest	Shares freely transferable	Restricted, needs society's approval
Government control	Regulation under Companies Act	Close supervision by the Registrar

Q.Distinguish between joint stock company and co-operative society.

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