1. The members also generally, belong to the poor class and the face value of the share is very much nominal generally up to Rs.10 & so on. Every member is free to inspect the books and records of the society; therefore, it becomes difficult to keep the secrets of … 3. It has less incentive, and there’s also a possibility of development of conflict between members. Cooperative societies financial strength depend on the cap contributed by its members and loan raising capacity from state cooperative banks. Extensive record keeping is necessary in this form of organization. A cooperative organization entails longer decision-making process. A member who wants to quite the society has to submit his shares to the society in order to get his money back. among members which may lead to disputes. It requires members to participate for success.

The shares of a cooperative society are not transferable. Cooperative societies are based on the principles of co-operation and therefore harmony among members is important. 2. But in practice, there might be internal politics, differences of opinions, quarrels etc. Cooperatives can be in virtually any industry, but you typically see them operating in the agricultural sector. Lack of secrecy: The affairs of a cooperative society are openly discussed in the meetings of its members. Such disputes affect the functioning of the co-operative societies. Disadvantages of a Cooperative Organization: 1. If you’re thinking about joining one, then these are the cooperative advantages and disadvantages that you’ll want to consider. Thus, cooperative^ are not suitable for the large scale business which require huge capital. List of the Advantages of a Cooperative. The disadvantages of cooperative organizations are as follows:-(1) Limitation of Capital: In co-operative organization there is a limitation on capital because the membership of the society is indirectly limited only up to local people. The membership fee is limited for which they are unable to raise large amount of resources as their members belong to the lower and middle class. 4. 5. Cooperatives help people come together as a community.