We can explain the difference between joint stock company and cooperative society as under these headings :
1. LEGISLATION :-
Joint stock company : A joint stock company is controlled by the company ordinance 1984.
Cooperative society : A cooperative society is controlled by the co-operative society act 1912.
2. FORMATION :-
Joint stock company : Joint stock company formation procedure is difficult.
Cooperative society : Cooperation society formation is easy.
3. NUMBER OF MEMBERS :-
Joint stock company : Public limited company is formed at least by two members and private by seven members.
Cooperative society : Co-operative society is formed at least by ten members above than 18 years.
4. OBJECTIVE :-
Joint stock company : Joint stock company basic objective to earn maximum profit.
Cooperative society : Co-operative society main objective is to improve the economic conditions of the members.
5. LIABILITY :-
Joint stock company : Joint stock company shareholders liability is limited.
Cooperative society : Cooperative society liability may b limited or unlimited.
6. RIGHT OF TRANSFER :-
Joint stock company : Joint stock company shares can be transferred freely.
Cooperative society : Cooperative society shares can not be transferred to the nonmembers.
7. ISSUANCE OF DEBENTURES :-
Joint stock company : Joint stock company may issue debentures to borrow money.
Cooperative society : Co-operative society can not issue debentures.
8. GOVERNMENT CONCESSIONS :-
Joint stock company : Joint stock company does not avail certain concessions given by the government.
Cooperative society : Co-operative society enjoys various concessions.
9. MANAGEMENT :-
Joint stock company : Joint stock company is managed by the Board of directors.
Cooperative society : In the cooperative society every member has an equal right in the management.
10. DISTRIBUTION OF WEALTH :-
Joint stock company : Joint stock company becomes the cause of unequal distribution of wealth.
Cooperative society : Co-operative society is very helpful is removing the unequal distribution of wealth.
11. ROLE OF MIDDLEMAN :-
Joint stock company : In the joint stock company middleman plays very effective role.
Cooperative society : In the cooperative society middleman has no role.
12. SALE OF SHARES :-
Joint stock company : Public limited company shares can be sold freely.
Cooperative society : Cooperative society shares cannot be sold freely.
13. AUDIT OF ACCOUNT :-
Joint stock company : Public limited company accounts Audit is compulsory.
Cooperative society : Co-operative society audit is not compulsory except co-operative farming.
14. PROFIT DISTRIBUTION :-
Joint stock company : Joint stock company profit is distributed among the shareholders according to the paid up capital.
Cooperative society : Co-operative society profit is distributed among the members according to their purchase from the store.
15. WINDING UP PROCEDURE :-
Joint stock company : Joint stock company winding up and registration procedure is complicated and long.
Cooperative society : Cooperative society registration and winding up is very simple.
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