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Co-operative Society |
Partnership Firm |
| (1) Meaning |
Co-operative Society is a voluntary association of individuals which is formed for providing services to its members. |
Partnership firm is formed by two or more persons to do business and share profits. |
| (2) Number of Members |
Minimum ten persons and maximum no limit. |
Minimum two persons and maximum fifty persons. |
| (3) Registration |
It is compulsory. |
It is not compulsory in India, but compulsory is Maharashtra. |
| (4) Liability |
Liability of members is limited upto the extent of unpaid amount on shares held by them. |
Liability of partners is unlimited, joint and several. |
| (5) Secrecy |
It is not possible to maintain secrecy in a Cooperative Society. |
It is possible to maintain secrecy to some extent in the firm. |
| (6) Management |
Managing Committee manages the society according to its bye-laws. |
All partners are involved in the management of the firm. |
| (7) Stability |
Stability is not affected by death, insolvency or lunacy of a member. |
Stability of a firm is affected by death, insolvency or lunacy of a partner. |
| (8) Government Control |
There is a lot of government supervision and control. |
There is minimum government supervision for a partnership firm. |
| (9) Act |
Co-operative Societies have to follow Partnership firms are governed by the Indian Cooperative Societies Act, 1912. In Maharashtra, the societies have to follow Maharashtra Cooperative Societies Act, 1960. |
Indian Partnership Act, 1932. |
| (10) Motive |
The motive is to give maximum services to the people |
The motive is to earn profits. |
| (11) Legal Status |
A Co-operative Society enjoys an independent legal status, distinct from its members. |
Partnership firms do not have an independent legal status. Partners and the firm are one and the same. |
| (12) Transfer of Shares |
Members can surrender shares to the society. |
Partners cannot transfer the shares without the consent of other partners. |
