ANSWER:
The following are the demerits of a co-operative society:
i. Excessive government control: Co-operative societies have to follow certain rules and regulations framed by the co-operative departments of the concerned state governments.
ii. Inefficiency in management: The management of a co-operative society generally comprises part-time or inexperienced people. They may not be skilled enough to handle the managerial functions effectively.
iii. Limited resources: The resources available with a co-operative society are limited to the extent of capital contribution by its members. The limited availability of resources restricts the scope of expansion of the co-operative society.
iv. Lack of secrecy: Secrets in a co-operative society are difficult to maintain, as the society has to disclose information related to its operations to its members.
v. Lack of motivation: Members of a co-operative society do not feel motivated to give their best, as there is no incentive for their hard work.
vi. Conflicts: Members of a co-operative society may lack maturity and experience to deal with business problems. This can lead to conflicts among the members.