MCQs · Q5
Q.The liability of a member of a service co-operative society is usually:
(a) unlimited, extending to all his personal property
(b) limited to the face value of the shares he holds
(c) equal to twice the amount of the loan he has taken
(d) nil, since a member never owes anything to the society
Maharashtra MsbshseTextbookSubjectiveImportance★★★★★est
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Start your 14-day free trial to unlock the full solution →Why (b) is correct: A service co-operative society is normally registered with limited liability, which means a member is answerable for the society's debts only up to the face (nominal) value of the shares he holds (more precisely, up to any amount still unpaid on those shares). His personal property beyond this amount cannot be attached to meet the society's obligations. This limited exposure encourages ordinary villagers to join without fearing the loss of their homes and land.
Why the distractors are wrong: …
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