Theory question 104
Co-operative SocietiesCommerce 2 (answer any five questions)
(a) Give any five features which are common to both co-operative societies and private limited companies.
(b) Explain any five differences between co-operative societies and private limited companies.
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(a) Any five: both are registered under the law; both are separate legal entities that can sue and be sued; members have limited liability; capital comes from members' shares; both have perpetual succession; both hold annual general meetings; both are managed by elected committees/boards; both share surplus/profit among members; both keep and audit accounts.
(b) Any five, explained by contrast: objective – service to members vs profit; voting – one member one vote vs votes according to shares held; distribution of surplus – according to purchases (patronage) vs according to shares held; membership – open and voluntary with no maximum vs 2 to 50 members; shares – not transferable, withdrawable at par vs transferable only with consent; registration – under the Co-operative Societies law vs Companies and Allied Matters Act; management – elected committee vs board of directors; interest on capital – limited fixed rate vs dividend that varies with profit.
In (b) state each difference for both bodies.