SIMILARITIES AND DIFFERENCES CO-OPERATIVE AND LIMITED LIABILITY COMPANY

SIMILARITIES AND DIFFERENCES CO-OPERATIVE AND LIMITED LIABILITY COMPANY

 FeaturesCooperative SocietyLimited Liability Company
1FormationMay only be registered under cooperative lawsMust be registered and incorporated under the Company Act.
2ManagementElected committee manages the affairs of the societyThe shareholders elect board of directors
3RegistrationMembers pay registration fee apart from the sharesRegistration fees are not paid after paying fully for the shares hold
4Distribution profitSurplus is divided on patronage basisSurplus is divided in proportion to share holding
5AimTo promote members’ welfareTo make profit
6Right of membersMembers have equal voting rightsMembers have controlling power on the basis of their shares

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