Influential members tend to dominate in the society’s affairs. Easy to form: The formation of a cooperative society is very simple as compared to the formation of any other form of business organisations. Question 8. Protection from exploitation: One of the most obvious advantages of a co-operative society is the fact that the members are protected from exploitation from middlemen. Limited resources: Cooperative societies financial strength depend on the cap contributed by its members and loan raising capacity from state cooperative banks. Thus, the management in cooperatives is democratic. 21. 19. 4. Cooperative is wide spread and very important to both the members, customers entire public and the government as well as those in marketing, production, distribution etc of good and services at a fair price to those that need them. A co-operative society generally does not enjoy much public confidence due to both the excessive state regulation and the dishonest and political conduct of the society’s office bearers. Motivation is conspicuous in a co-operative society by its absence. Unlike other three forms of business ownership, a co­operative society is exempted from income-tax and surcharge on its earnings up to a certain limit. This cooperative society is formed when a group of people with common interest decide to cooperate, rather than in dealing with a common set of supplier. Ans: Given below are the types of cooperative societies: Consumer Cooperative Society: Its purpose is to purchase goods directly from the manufacturer and deliver it to the consumers at a reasonable price. ADVERTISEMENTS: 1. The main limitations of a cooperative … Absence of such spirit breeds mutual rivalries among the members. Matters of larger significance can be decided only at the general meeting of the society which is really a time consuming affair. 4. Easy to form: The formation of a cooperative society is very simple as compared to the formation of any other form of business organisations. Before publishing your articles on this site, please read the following pages: 1. Despite many an advantages, the cooperative society suffer from certain limitations c drawbacks. Membership of co-operative society. The members in a co-operative society are people with limited resources, and therefore, they cannot make large capital contributions. Content Filtrations 6. Li… After an enthusiastic start, the functioning of a co-operative society is generally marred by a lot of rivalry, factionalism, and politicking among its members, and this reflects on the efficiency and effectiveness of the society. 16. Limitation of Co-Operative Society and Meaning of Joint Stock Company Doorsteptutor material for UGC is prepared by world's top subject experts: Get full length tests using official NTA interface : all topics with exact weightage, real exam experience, detailed analytics, comparison and rankings, & … Content Filtrations 6. There is no limit on maximum members. As a result, the life of a cooperative society remains unaffected by the death, insolvency or insanity of its members. Housing Cooperative Society: This committee is formed to help the members who need lands and houses. These also cannot employ the professional managers because it is neither compatible with their avowed ends nor the limited resources allow for the same. The procedure involves in the registration of a cooperative society is very simple and easy.… February 7, 2020 March 5, 2020 by Louise Gaille. The co-operative society is a separate legal identity to the society. 18. Like company form of ownership, the liability of members is limited to the extent of their capital in the cooperative societies. The aim of a cooperative society is to protect the economic interests of members in the face of possible exploitation at the hands of middlemen obsessed with the desire to earn greater profits. This is reflected in misappropriations of funds by the officials for their personal gains. Plagiarism Prevention 4. Limitations Of Cooperative Society . As it is a voluntary association, the membership is also voluntary. Delay is experienced not only at the level of taking decisions but also in their implementation. Content Guidelines 2. It however suffers from the following limitations. Cooperative institutions that started mainly for the provision of debt have taken many forms today. , and cohesive functioning, a co-operative society to get registration compared to the formation of a,! 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