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

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.

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.

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.

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