(a) Give any five features which… | Commerce

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(a) Give any five features which are common to both cooperative societies and private limited companies

(b) Explain any five differences between cooperative societies and private limited companies.

Answer

Answer Details

(a) Five features common to cooperative societies and private limited companies

Both are corporate/registered bodies: Each must be registered and formed under the relevant law, giving it a legal existence separate from its members.
Limited liability: In both, the liability of members is limited to the amount of their shares or contribution.
Separate legal entity: Both can own property, sue and be sued, and enter contracts in their own name.
Perpetual succession: The death, retirement or bankruptcy of a member does not dissolve the organisation; it continues to exist.
Capital from members: Both raise their capital from the contributions or shares of their members.

Other acceptable points: both are managed by elected officials/directors, and both keep and audit proper books of account.

(b) Five differences between cooperative societies and private limited companies

Basis	Cooperative Society	Private Limited Company
Main aim	To promote the welfare of members	To make and maximise profit for owners
Voting rights	One member, one vote, regardless of shares	Voting is according to number of shares held
Distribution of surplus	Shared as dividend on patronage/purchases	Shared as dividend on shares held
Membership	Open and voluntary, membership can be large	Restricted, limited to a maximum of 50 members
Transfer of interest	Shares are not freely transferable	Shares may be transferred subject to the articles

(a) Give any five features which are common to both cooperative societies and private limited companies (b) Explain any five differences between cooperative...