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    Any ten adults can voluntarily form an association and get it registered with the Registrar of Co-operative Societies.

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

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

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