Co-operative societies have the following merits: 

1. Equality in Voting Status – 

Every member, despite his/her capital investment. has equal voting rights. 

2. Limited Liability – 

Every member has a limited amount of liability on the basis of his/her capital investment. The loan cannot be repaid from his/her own property. 

3. Stable Existence – 

Due to its stable existence, there is no effect of death, retirement or insolvency of any partner. 

4. The economy in operation – 

The members of the committee provide common and unpaid services, in fact, most of the members are in the committee only. This prevents bad loans too. 

Limitations of Co-operative movement: 

1. Limited Resources – 

Every member of the Co-operative movement has a limited number of, and thus has a limited amount of resources. 

2. Inefficiency in management – 

Cooperative committee works on lesser salary and therefore they do not get good managers and the ones who provide their time to them are not professionals. 

3. Lack of Secrecy – 

According to the co-operative Movement Act, Section 7 every subject is discussed in open and the committee has the right to make its ideas public. Therefore the secrecy is breached. 

4. Government Control – 

Co-operative societies are provided with facilities by the government. And in return, they have to follow all the government rules. It is thus controlled by state Co-operative society. This results in a negative effect on their activities. 

5. The difference of opinion – 

The difference of opinion in the members sometimes makes it impossible for them to come to a conclusion. Some members pay attention only to their personal Interest.