Maharashtra State BoardHSC Commerce 12th Board Exam
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Co-operative Society and Joint Stock Company. - Organisation of Commerce and Management

Answer in Brief

Co-operative society and Joint stock company.

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Solution 1

Co-operative society and Joint Stock Company

Basis of Difference Cooperative society Joint Stock Company
Liability The liability of the members is limited to the amount of capital contributed by them. The liability of shareholders is limited to the extent of the unpaid amount on the shares held by them.
Management and control The management and control is by the management committe formed by the members. Management and control lies in the hands of the managing director
Governance It functions as per the rules and regulations framed by cooperative departments of the concerned state government. It is governed by the Companies Act 1956

Solution 2

Co-operative society and Joint Stock Company

Basis of Difference Cooperative society  Joint Stock Company
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 .
Liability The liability of the members is limited to the amount of capital contributed by them. The liability of shareholders is limited to the extent of the unpaid amount on the shares held by them.
Management and control The management and control is by the management committe formed by the members. Management and control lies in the hands of the managing director
Governance It functions as per the rules and regulations framed by cooperative departments of the concerned state government. It is governed by the Companies Act 1956
Formation Co-operative Society is Comparatively cheaper  Joint stock company involves many legal, lengthy complicated and costly process
Motive Main motto of a co-operative society  is to provide services to members and secondary profit making Main motto of a Joint stock company is to earn profit and secondary is to providing services
Transfer ability of Shares Shares are not transferable to other, though they can be surrendered to the society Shares are freely transferable in public limited company
Members Minimum of 10 members are required and no mix mum limit for the formation of co-operative society At least 2 members are required for private company and maximum 50 members.public company has minimum 7 members and maximum not limit
Management Managing committee is the managing body of co-operative society. Board of directors constitute the management of company. Directors run the business since they possess the required expertise
Capital Raising capacity There is no capital appreciation and it can raise limited capital since the dividend is fixed Large capital raise since attractive dividend is paid and there is capital appreciation
Voting Rights The principle of voting is one member one vote The principle of voting is one share one vote
Remuneration Managing committee works honorary capacity

Directors are paid fees for attending Board Meetings

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