Similarities / Differences between Co-operative Society and Limited Liability Company
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Similarities between Co-operative Society and Limited Liability Company:
1. Both are legal entities.
2. Members buy shares.
3. They hold an Annual General Meeting (AGM)
4. Both are registered.
5. The shareholders receive dividend.
Differences between Co-operative Society and Limited Liability Company:
| Co-operative SocietyThe term society is derived from the Latin word 'socius' meaning friendship or companionship. Society is a community, nation or group of people who share the same traditions, institutions, rules and... More: | Limited Liability Company: | |
| 1. | Formation: May only be registered under co-operative laws. | Must be registered and incorporated under the company Act. |
| 2. | Management and Control: Elected committee manages the affairs of the movement. | The shareholders elect the board of directors. |
| 3. | Registration: Members pay registration fees apart from the shares. | Registration fees are not paid after paying fully for the shares held. |
| 4. | Profit Distribution: Surplus is divided on patronage basis. | Surplus is divided in proportion to shareholding. |
| 5. | Aim: To promote members’ welfare. | To make profit. |
| 6. | Right of Members: Members have equal voting rights. | Members have controlling effect on the basis of their share. |
Evaluation Questions:Â
1. Briefly discuss types of cooperative societies
2. List types of cooperative societies
3. Mention the problems facing cooperative societies
4. What are the benefits one can derive from being a member of a cooperative society?
(a) State four characteristics of a Co-operative Society
(b) Mention and explain three types of Co-operative Society
(WASSCE June, 2004) View Answer
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