Question

Statement $1$:
The liability of members of co-operative society remains limited to the extent of capital contributed by them.
Statement $2$:
The members of co-operative society are personally liable of co-operative society.
Select the correct answer from the options given below.

• A. Both $1$ and $2$ are true
• B. $2$ is true but $1$ is false
• C. $1$ is true but $2$ is false
• D. Both $1$ and $2$ are false

Answer 1

The correct option is C $1$ is true but $2$ is false

A Co-operative Society is an artificial voluntary association of people who work together to promote their economic interest and in order to achieve common goals. The liability of the members of the cooperative societies are limited to the extent of their capital contribution in the society and in case of any insolvency no creditors can claim the personal assets of its members.