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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.The members or their elected representatives are not experienced enough to manage the society.

Ø Elimination of Middlemen’s Profit: Through co-operatives the members or consumers control their own supplies and thus, middlemen’s profit is eliminated.

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

This does not provide enough motivation to the members to put in their best effort and manage the society efficiently.

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

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