Question

Distinguish between the following:

Joint Stock Company and Co-operative society.

Answer 1

Joint stock company	Co-operative society
An organisation which is managed and controlled by an incorporated voluntary association of many persons to conduct business to make a profit and distribute it among its members is called a Joint Stock Company.	An organisation which is managed by an incorporated voluntary association of many persons, usually of limited means to conduct business to achieve common economic objectives is called a co-operative organisation.
The company is regulated and controlled by the provisions of the Indian Companies Act. 1956	A co-operative society is regulated and controlled by the provisions of the Co-operative Societies Act, 1912.
The main motive of the company is to make prom and providing services is its secondary motive.	The main motive of a co-operative organisation is to render service and profit-making can be its secondary objective.
Shares are freely transferable to a public company. They are also listed on stock exchanges.	Shares are not transferable but can be surrendered to a co-operative organization for encashment.
Minimum 2 members and a maximum of 200 members for a private limited company. In the case of public companies, the minimum number of members is 7 and the maximum number is unlimited.	The minimum number of members to form a cooperative society is 10. There is no limit on the maximum number of members.
Every share has one vote. The principle of ‘One share, One-vote’ is followed.	Every member has one vote irrespective of the number of shares held by him. The principle of ‘One member, One-vote’ is followed.