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But it is often seen that there is a lot of friction between the members because of personality differences, ego clash, etc.

The selfish attitude of members may sometimes bring an end to the society.

Ø Limited Liability: The liability of members of a co-operative society is limited to the extent of capital contributed by them.

Unlike sole proprietors and partners the personal properties of members of the co-operative societies are free from any kind of risk because of business liabilities.

The members cast their vote to elect their representatives to form a committee that looks after the day-to-day administration.

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Again, because of limited capital they are not able to get the benefits of professional management.

Ø Lack of Motivation: Every co-operative society is formed to render service to its members rather than to earn profit.

Ø Dependence on Government: The inadequacy of capital and various other limitations make cooperative societies dependant on the government for support and patronage in terms of grants, loans subsidies, etc.

Due to this, the government sometimes directly interferes in the management of the society and also audits their annual accounts.

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