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Difference between partnership and co-operative society

Answer» \tPointsCo-operative SocietyPartnership Firm1. MeaningCo-operative Society is a voluntary association of individuals Which is formed for providing services to its members.A partnership firm is formed by two or more persons to do business and share profits.2. Number of membersMinimum ten persons and maximum no limit.Minimum two persons and a maximum of fifty persons.3. RegistrationIt is compulsory.It is not compulsory in India, but compulsory is Maharashtra4. LiabilityThe liability of members is limited up to the extent of the unpaid amount on shares held by them.The liability of partners is unlimited, joint, and several.5. SecrecyIt is not possible to maintain secrecy iii a Co-operative Society.The company has huge capital.6. ManagementManaging Committee manages the society according to its bye-laws.All partners are involved in the management of the firm.7. StabilityStability is not affected by death, insolvency, or lunacy of a member.The stability of a firm is affected by death, insolvency or lunacy of a partner.8. Government ControlThere is a lot of government supervision and control.There is minimum government supervision for a partnership firm.9. ActCo-operative Societies have to follow the Indian Co-operative Societies Act, 1912. In Maharashtra, societies have to follow the Maharashtra Co-operative Societies Act, 1960.Partnership firms are governed by the Indian Partnership Act, 1932.10. MotiveThe motive is to give maximum services to the people.The motive is to earn profits.11. Legal StatusA Co-operative Society enjoys an independent legal status, distinct from its members.Partnership firms do not have an independent legal status. Partners and the firms are one and the same.12. Transfer of sharesMembers can surrender shares to society.Partners cannot transfer the shares without the consent of other partners.\t


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