In some countries, personal liability is interpreted as co-operative members being required to assume personal responsibility for any losses made by their co-operative. In these countries there is no limitation on members' liability for debts the co-operative may incur. Where members' liability is not limited by law, a co-operative in economic difficulty may need to call upon members to invest additional capital, either by increasing the basic number and value of voting shares or requiring members to invest in non-voting capital.

In other countries with specific co-operative legislation a co-operative members' financial liability may be limited by law or contract, either to the value of their membership share and other capital they have invested in the co-operative, or a multiple thereof. The extent of member liability depends entirely on the national laws of the country in which a co-operative operates and the regulatory regime in their own jurisdiction with which co-operatives are required to comply. One of the key political issues for co-operatives is to ensure that they are equally able to benefit from national laws that limit members' liability as are personally owned and/or joint stock investor owned companies.

This personal liability rule relative to a members' capital contributions in a co-operative is important because it is the ability of creditors to make a claim on members' capital as part of a co-operative's own capital resources that underpins a co-operative's business operation.