A co-operative is a distinctive form of business which pursue specific aims in the interest of its members. However, for particular reasons this form of business is subject to certain limitations when compared with the company form of business. Inherent business problems may arise as a result of these limitations which can not be resolved with-in the co-operative structure. One such problem is the relative inability of agricultural co-operatives to form sufficient own capital. A further problem arises when members tend to look upon their cooperative as an investment institution. In an endeavour to find a solution to these problems, conversion to another form of enterprise is often considered. Such action however, holds both advantages as well as disadvantages for the several interest parties i.e. the members and management of the co-operative, the co-operative as business undertaking, the State and the newly formed enterprise. This action may also prejudice the original aims of the members which they had in mind when forming the co-operative.