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Ø Open Membership: Persons having common interest can form a co-operative society.Any competent person can become a member at any time he/she likes and can leave the society at will.

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

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Limitations of Co–operative Society Besides the above advantages, the co-operative form of business organisation also suffers from various limitations. Ø Limited Capital: The amount of capital that a cooperative society can raise from its member is very limited because the membership is generally confined to a particular section of the society.

Again due to low rate of return the members do not invest more capital.

Government’s assistance is often inadequate for most of the co-operative societies.

Ø Problems in Management: Generally it is seen that co-operative societies do not function efficiently due to lack of managerial talent.

This committee is accountable to all the members of the society.

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

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