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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.

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.

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.Ø Democratic Control: A co-operative society is controlled in a democratic manner.The members cast their vote to elect their representatives to form a committee that looks after the day-to-day administration.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.