Differences between a co-operative society and a company Limited by Guarantee

Differences between a co-operative society and a company Limited by Guarantee

September 19, 2019

A Co-operative society is an association of different individuals coming together to achieve an economic, cultural and social aspiration.  On the other hand, a company limited by guarantee as the name implies, is a company incorporated with the aim of promoting a particular type of objective.

The narrative between these two is while a company limited by guarantee is solely created for the purpose of promoting an objective such as art, culture, science, religion, education, research, charity etc. It is not created with the sole aim carrying out business and although it is permitted to go into commerce, it cannot distribute the profit to its members but rather is obligated to use it for the promotion of its objectives. While a co-operative society does not have such restrictions .For a co-operative, making profit and distributing same among its members is legal. In fact, the economical reason is one of the major reasons while a co-operative society is registered under the Ministry of Commerce and industry

The aim of a co-operative is to meet the need of their members. On the other hand, the aim of a company Limited by guarantee is to promote its objective(s). The structure of a company limited by guarantee is such that the members are liable to the amount they guarantee.

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

More Articles

Search

Connect With Us

Got any questions?

If you are having any questions, please feel free to ask.

Send us an email

Frequently Asked

  • What additional documents do I require to file my Annual Returns?
  • Must my Company Secretary be a Lawyer?

    Although it’s ideal to have a lawyer as a company secretary, it is not compulsory for small private businesses.
  • What is an execution clause in a contract?

    This is the section in which the parties sign the contract or agreement.
  • What are the benefits of Registering with SON?
    1. Product traceability in the Nigerian market
    2. Detection of counterfeit products
    3. Barriers to the circulation of substandard goods
    4. The official SON Product Registration Logo and number are displayed on registered products.
  • Can I use the data collected legally for one purpose for another purpose?

    No, you can’t use the data collected for one purpose for a different purpose.
  • Do I need permission to copy or use any copyright material in Nigeria?

    You do not require permission under the Nigeria Law to use or copy a copyright material when it is for research purpose, educational, non-commercial purpose, reviews and criticism etc

    However, when the copies are large, you must seek permission from the copyright owner.
  • What are the product categories available when registering with NAFDAC?

    The product categories include: Food, Cosmetics, Drug, Medical Device, Agro-Chemicals & Pesticide, Veterinary Products, Vaccines & Biologicals, Herbal and Nutraceuticals and Water
  • How many directors do I need to start a company?

    A minimum number of one (1) adult director is required to form a company.
  • What do I need for a trademark search in Nigeria?

    To do a trademark search you will need the name or/and logo (device) of the trademark to be searched and the Class of the trademark that accurately describes it.
All FAQs
Call Us Now on +234 901 719 0079 Chat on WhatsApp