What is the difference between a Cooperative Society and a Society registered under Societies Registration Act?
A society is essentially an association of seven or more people registered under the Societies Registration Act, 1860 – which is an all India Act (however, many States, have variants on the Act) and which has as a stated purpose some charitable or benevolent purpose either in regards to the public at-large or in regards to the common interest of the members and which operates as nearly as possible at cost. A registered society is a legal entity with certain limitations. However, members of a cooperative society get together to promote the economic interest of their members. They have to submit viable business plan of the cooperative before registration. These two prerequisites are not present in a society.
What is the difference between a Cooperative Society and a Company?
The cooperative is different from a Company in the following ways: Cooperative follows the principle of one-member–one vote, while the voting in a Company is determined by the type and number of shares held. A cooperative is an association of members but a Company is an association of capital. The main objective of a cooperative is to serve members’ needs, but the objective of a company is to maximize profits for its shareholders. In a cooperative, no member is permitted to vote by proxy whereas in a company proxies are allowed to vote.