1. Yes. If the members of the managing committee are corrupt they can swindle the funds of the co-operative society.
2. Many cooperative societies have faced financial troubles and closed down because of corruption and misuse of funds.
3. Co-operative societies give loans only for productive purposes and not for personal or family expenses.
4. Therefore the rural poor continue to depend on the money lenders for meeting expenses of marriage, medical care, social commitments, etc.
5. Co-operatives have not been successful in freeing the rural poor from the clutches of the money lenders.
6. The members of the managing committee may not have the required qualification, skill or experience. Since it has limited financial resources, its ability to compensate its employees is also limited.
7. Therefore it cannot employ the best talent. Lack of managerial skills results in inefficient management, poor functioning and difficulty in achieving objectives

1. Consumer cooperatives are organized by consumers that want to. achieve better prices or quality in the goods or services they purchase.
2. In contrast to traditional retail stores , or service providers, a consumer cooperative exists to deliver goods or services rather than to maximize profit from selling those goods or services.
3. Nationally, the most widely used cooperative form is the credit union, with some 90 million members.
4. Credit union assets have grown a hundred-fold in three decades.
5. Credit unions are essentially cooperatives of people that use banking services.
6. Students' cooperative stores, Cooperative provision stores, and supermarkets set up on cooperative societies of India are examples of this type.

Consumers Cooperative:
Consumer cooperatives are organized by consumers that want to achieve better prices or quality in the goods or services they purchase.
Producers Cooperative:
Producer cooperatives are established and operated by producers. Producers can decide to work together or as separate entities to help increase marketing possibilities and production efficiency.
Marketing Cooperative:
Cooperative marketing societies are associations of small producers formed for the purpose of marketing their produce.
Credit Cooperative:
Cooperative credit societies are societies formed for providing short-term financial help to their members.
Housing Cooperative:
These cooperative housing societies are meant to provide residential accommodation to their members on ownership basis or on rent.
Cooperative Farming Societies:
When various farmers in a village pool their land together and agree to; treat the pooled piece of land as one big farm for the purpose of cultivation, purchase the necessary inputs for the cultivation, and market the crops jointly, they are assumed to have formed a cooperative farming society. Such a society, for its proper working elects its office bearers on the basis of one member-one-vote.

Advantages :
The following are some of the important advantages of co-operative societies.
a) Voluntary organization :
1. The membership of a co-operative society is open to all. Any person With common interest can become a member.
2. The membership fee is kept low so that everyone would be able to join and benefit from cooperative societies.
3. At the same time, any member who wants to leave the society is free to do so. There are no entry or exit barriers.
b) Easy formation:
1. Cooperatives can be formed much easily when compared to a company.
2. Any 25 members who have attained majority can join together for forming a cooperative society by observing simple legal formalities.
c) Democracy:
1. A co-operative society is run on the principle of "one man one vote'.
2. It implies that all members have equal rights in managing the affairs of the enterprise.
3. Members with money power cannot dominate the management by buying majority shares.
d) Equal distribution of surplus:
1. The surplus generated by the cooperative societies is distributed in an equitable manner among members.
2. Therefore all the members of the cooperative society are benefited.
3. Further the society is also benefited because a sum not exceeding 10 per cent of the surplus can be utilized for promoting the welfare of the locality in which the cooperative is located.
e) Limited liability:
1. The liability of the members in a cooperative society is limited to the extent of their capital contribution.
2. They cannot be personally held liable for the debts of the society.
f) Separate Legal entity:
1. A cooperative society enjoys separate legal entity which is distinct from its members.
2. Therefore its continuance is in no way affected by the death, insanity or insolvency of its members. It enjoys perpetual existence.

1. Voluntary and Open Membership:
Co-operatives are voluntary organizations, open to all people able to use its services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
2. Democratic Member Control:
Co-operatives are democratic organizations controlled by their members-those who buy the goods or use the services of the co-operative-who actively participate in setting policies and making decisions.
3. Member's Economic Participation:
Members contribute equally to, and democratically control, the capital of the co-operative. This benefits member in proportion to the business they conduct with the co-operative rather than on the capital invested.
4. Autonomy and Independence:
Co-operatives are autonomous, self-help organizations controlled by their members. If the co-operative organisation enters into agreements with other organizations or raises capital from external sources, it is done so based on terms that ensure democratic control by the members and maintains the cooperative's autonomy.
5. Education, Training, and Information:
Co-operatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of their co-operative. Members also inform the general public about the nature and benefits of co-operatives.