Page 4 - Lesson Notes 7

Number of Minimum 2,Maximum 15 Minimum 3,Maximum 15
directors
Commencement After the certificate of After issue of certificate of
of business Incorporation commencement of business
Invitation to Prohibited from inviting the May invite the public for subscription
public public
Issue of Not required Required to issue prospectus
prospectus
Transfer of Restricted Transferable
share

Differences between Cooperative society and company

Basis Cooperative Society Company
Motive Service to members Profit motive followed by service
motive
Regulation Act The Cooperative societies Act, The companies Act,2013
1912 or the state cooperative
societies Act.
Transferability Not transferable Not transferable in private company,
of share transferable in public company
Members Minimum 10,no upper limit Minimum 2 and maximum 200 in
private company, minimum 7 with no
upper limit in public company
Voting rights One person one vote One share one vote
Controlling The society is managed by an The management is inthe hands of
executive elected from Board of Directors.
members.

Differencesbetween partnership and company:

Basis Partnership Company
Regulating act Indian partnership Act, 1932 Indian Companies Act,2013
Number of Minimum 2,Maximum 50 Minimum 2 and Maximum 200 in
members private company, minimum 7 with no
upper limit in public company
Separate Entity No separate entity Separate entity
Liability Unlimited Limited
Transfer of Not possible without the Freely transferable except in the case
interest consent of all partners of private company
Stability Unstable life Long life
Formation and No legal formalities required Legal formalities required
winding up except in registered firm