multi state cooperative society

Broad differences between a co-operative and a company are as follows:

S. No Item Cooperative Society Company
1 Object Interest of members and community Self interest either of management or the share holders
2 Number of members Minimum number of members should be 50 for a multi state cooperative society from each state in case of individual membership
In case societies are members of a Multi State Cooperative Society, two societies from different states should sign the application of registration of the society
If a Multi State Cooperative Society is a member then the multi state cooperative and a society should sign the application of registration
In a public limited company, minimum number of members should be 7 and in a private limited company minimum number of members should be 2
3 Management Chairperson is elected by the Board of Directors from among themselves. The Managing Director / Chief executive is appointed by the Board of Directors Usually, Chairperson / Managing Director are persons with maximum number of shares in the company
4 Share Capital The shares of cooperative society are not issued to general public by advertisement and can be issued any time. Shares can be withdrawn member / society as prescribed by rules in their byelaws. Shares are issued to general public or by invitation. In a company shares cannot be withdrawn by a share holder.
5 Types of shares Only equity shares are available Equity and preferential shares may be issued
6 Voting Power Member of a cooperative society have right of only one vote, irrespective of the number of shares held of any denomination Voting rights depend directly on the holding of shares
7 Distribution of Profits Minimum 25% of net profits should be transferred to the General reserve and the maximum dividend cannot exceed 20% No restrictions on a company
8 Taxes Cooperatives are exempt from few taxes in some states like stamp duty. Tax rates also vary No exemptions provided
9 Workers participation Provision for workers participation in the management through a representative exists No such provision for workers
10 MRTP Act Not applicable to Multi State Societies Applicable
11 Control The Central registrar of Cooperatives advises in the affairs of a multi state society Companies are governed by the Company Registrar of the states where its registered office is located

For Multi-state Cooperative Society Consultancy Visit:


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