Student Name: Srabonty Rani Saha

Student ID: 20-43393-1

Section: A

Mr. Mahbub is a government officer. He has very limited income. But he wants to make property for his
future generation. So, he and his another 10 colleagues decided to establish a co-operative business.
They don’t have any saving, that’s why they decided that they will gather money for next 10 years. But,
Their reputation is good. They have submitted an application to co-operative society, that they are
interested to establish a business. But, co-operative society refused them. why co-operative society
refused them?

#Answer:

Mr. Mahbub who is a reputed government officer, wants to establish a co-operative business with his
colleagues but they have no savings. They submitted an application to co-operative society but, co-
operative society refused them.

As per The Cooperative Societies Act, 2001, for banking and unlimited liability cooperatives some
financial conditions have been imposed.

As they have no savings and their economic condition is not that satisfactory, co-operative society
refused them. They have no ability to pay the future liabilities.