Differences between Co-operatives and other Legal Entities

Differences Co- Sole Partnership Close Company (excl.

operative proprietorship Corporation not for profit)
Reason To provide a Profit driven Profit driven Profit driven Profit driven
service to
members
Decision- Democratic owner controlled Divided between Proportional to Proportional to
making partners interest held shares held

Capital Members Own contribution; Own contribution; capital Own contribution; Raised through
fees; capital that the that the business is able capital that the shareholders
subscription business is able to to raise business is able
fees raise to raise

No of people 5 =/< no limit 1 2 < 20 1>10 Private = (1 > 50)

Public = (7 > )
Membership Limited - on Limited in number Limited in number Limited in Private co = limited in
limitations economic number number
grounds Public co = unlimited
Liability Limited Unlimited Unlimited; Limited to interest Limited by shares
(to members (Exception: Undisclosed held capital
unpaid shares partners=no liability to 3rd
/ members parties; limited to
fees) partnership interest
against partners)