GENERAL KNOWLEDGE

Detailed explanation-1: -(b) whether the liability of the members of a Co-operative Society is unlimited or limited by shares, the liability of the Government which has taken shares in Co-operative Society shall be limited to the share capital subscribed by the Government.

Detailed explanation-2: -The co-operative society is a separate legal identity to the society. It does not get affected by the entry or exit of its members. There is limited liability of the members of co-operative society. Liability is limited to the extent of the amount contributed by members as capital.

Detailed explanation-3: -Limited Liability: The liability of members of a co-operative society is limited to the extent of capital contributed by them. Unlike sole proprietors and partners the personal properties of members of the co-operative societies are free from any kind of risk because of business liabilities.

Detailed explanation-4: -Subject to the Act, the liability of a current member of a society is limited to the unpaid amount of his subscription for shares.