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?
  • What is the first thing I must do to register a business in Nigeria?

    To register a business in Nigeria; you would need to conduct a name search of the business. You can achieve this using your CAC-CRP account.
  • Why is mutual assent important in a contract?

    This is one of the key elements of a contract because is shows the meeting of the minds of both parties
  • Is there a penalty for late renewal of registration of products with NAFDAC?

    Yes, there is a late renewal fee, which is dependent on the category of the product.
  • What is personal data?

    This is any information that can be used to identify an identifiable human person such passport photograph.
  • 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.
  • Do I have to physically drop off my product sample at NAFDAC office?

    No, you can choose to have it sent to NAFDAC office
  • Can my kids be shareholders in my company?

    Yes your kids can hold shares in your company but there must be a minimum of two adult shareholders before kids can be included.
  • How long does a trademark registration in Nigeria Last?

    Trademark is valid for seven years from the date of application but you may renew the application for the trademark for an additional period of 14years.
All FAQs
Call Us Now on +234 901 719 0079 Whatsapp icon Chat on WhatsApp