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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.Ø Lack of Co-operation: The co-operative societies are formed with the idea of mutual co-operation.But it is often seen that there is a lot of friction between the members because of personality differences, ego clash, etc.
For this reason when this occurs, an electronic rectal examination must be executed to see if you can find any swollen veins and also other irregularities.
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.
Ø Elimination of Middlemen’s Profit: Through co-operatives the members or consumers control their own supplies and thus, middlemen’s profit is eliminated.
The members or their elected representatives are not experienced enough to manage the society.
Again, because of limited capital they are not able to get the benefits of professional management.