Top 10 differences between cooperative enterprise and Joint Stock Company
|Differences between cooperative enterprise and Joint Stock Company
The following are some of the differences between Cooperative enterprises and Joint Stock Companies.
Point of difference | Cooperative Enterprise | Joint Stock Company |
---|---|---|
1. Formation | It if formed by a group of persons belonging to one class. It deals with members only | It is formed with various classes of people and deals with public. |
2. Profit motive | It works without profit motive. | Its main aim is profit making. |
3. Objective | Its object is to eliminate middlemen in the chain of distribution. | It is capitalistic in nature and encourages competition. |
4. No. of members | The minimum number of members is 10 and there is no maximum limit. | The minimum number is 7 and there is no maximum limit in a public limited company. |
5. Customer | Generally, the sellers and buyers are same. | The sellers and buyers are not same. |
6. Use of Profits | Profits are used for the common benefits of the society. | Profits are meant only for the shareholders. |
7. Transfer of shares | Its shares are not transferable. | Its shares are transferable. |
8. Voting rights | Each member will have a vote irrespective of the number of shares taken by him. | Each share will have a vote. |
9. Management | Only members can take part in management. | Outsiders also may take part in the management. |
10. Legislation | It is regulated by the Co-operative Societies Act. | It is regulated by the Companies Act. |
The above table differentiates Cooperative enterprise from a Joint Stock Company