Q.State the merits of a Cooperative Society.

A cooperative society's merits stem from being easy to form, democratically run, and legally durable once registered.

A Cooperative Society offers several genuine advantages:

1. Easy to form — registration requires only a minimum of ten adult members with a common economic objective, an application, and bye-laws, involving far fewer formalities than incorporating a company.
2. Democratic management — the one-member-one-vote principle ensures control rests equally with every member, regardless of capital contributed.
3. Limited liability — a member's risk is confined to the capital contributed (or a defined multiple under the bye-laws), never extending to personal property.
4. Separate legal entity with perpetual succession — once registered, the society's existence continues unaffected by a change in its membership. …

Students sometimes claim cooperative societies can raise unlimited capital like a company — in fact, limited capital-raising ability (since members are of modest means and the society cannot tap the …