Sections 107 and 109 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 107 says where a society keeps its register of members and copies of its annual returns, and who may inspect them. Section 109 requires the board to lay a balance-sheet and a profit and loss account before every annual general meeting; since 2023 the balance-sheet is as at the end of every "financial year".
This article follows the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023, which amended s.109 by its section 41 and inserted a definition of "financial year" in s.3 by its section 2. The 2023 Act came into force on 3 August 2023 (notification S.O. 3493(E)). Section 107 was not amended.
The register of members, the index of members, the register of debenture holders and copies of all annual returns with certificates and documents are kept at the registered office. Any member or debenture holder may inspect them without fee; any other person on payment of a prescribed sum, and not less than two hours in each day must be allowed. At every annual general meeting the board lays a balance-sheet as at the end of every financial year and a profit and loss account for that year.
Section 107(1): what is kept at the registered office
"The register of members commencing from the date of the registration of multi-state cooperative society, the index of members, the register of debenture holders, and copies of all annual returns prepared together with the copies of certificates and documents, shall be kept at the registered office of the multi-state cooperative society."
| Item | Notes from the text |
|---|---|
| Register of members | From the date of registration of the society |
| Index of members | Kept with the register |
| Register of debenture holders | Named in the section; the text does not explain it further |
| Copies of annual returns | With copies of certificates and documents |
All are kept at the registered office. Annual returns themselves are dealt with in s.120; see our article on filing of annual returns.
Section 107(2): inspection
The registers, indexes, returns and copies of certificates and other documents "shall be open during business hours (subject to such reasonable restrictions, as the multi-state cooperative society may impose, so that not less than two hours in each day are allowed for inspection) to the inspection-
- (a) of any member or debenture holder, without fee; and
- (b) of any other person, on payment of such sum as may be prescribed for each inspection."
The society may impose reasonable restrictions on hours, but not so as to allow less than two hours in each day. The sum payable by an outsider is left to rules; the Rules, 2002 as amended should be checked. This article gives no sum.
Example. Devendra, a member of the invented Penganga Multi-State Farmers' Society, asks to see the register of members. The office offers one hour on Saturdays. Under s.107(2), the society may impose reasonable restrictions on business hours but not less than two hours each day are to be allowed for inspection, and a member pays no fee. If a society's hours are in doubt, a short legal consultation can help to read the section against its bye-laws.
Separately, new s.106A requires the Chief Executive to keep a copy of the rules, bye-laws and list of members open to inspection without charge at the registered address; see our article on the Co-operative Information Officer and inspection of bye-laws.
Section 109: balance-sheet and profit and loss account
The print of the section head has no full stop after the number ("109 Annual accounts and balance sheet"). As amended, the section reads: "At every annual general meeting of a multi-state cooperative society, the board shall lay before the multi-state cooperative society- (a) a balance-sheet as at the end of every financial year; and (b) a profit and loss account for that year."
The words "co-operative year" in clause (a) were replaced by "financial year" in 2023. The Amendment Act defines the term in new s.3(ka): "'financial year', in relation to any multi-State co-operative society or class of such societies, means the year ending on the 31st day of March of the year and where the accounts of such society or class of such societies are, with the previous sanction of the Central Registrar, balanced on any other day, the year ending on such day". At the same time the Act omitted clause (i) of s.3, the definition of "cooperative year".
A drafting point
Other sections of the principal copy that say "cooperative year" were not touched by the Amendment Act (the Amendment Act amends s.109(a) only). This article quotes each such expression as printed in its own section and notes once that the defined term was omitted. The text does not say how those sections are to be read. Our article on annual returns and the one on the annual general meeting cover provisions that refer to accounts and meetings.
How the accounts reach the meeting
- The board lays the balance-sheet and profit and loss account at the annual general meeting (s.109).
- The business of the meeting is in s.39, where a new clause (p) deals with appointment of the auditor.
- The registers behind the accounts are kept at the registered office (s.107).
- The return that follows is filed under s.120.
The text of s.109 says "lay before the multi-state cooperative society", meaning the general body at the meeting. It does not prescribe a form for the accounts, and no form or accounting standard is named in the section. Accounting and auditing standards are the subject of other sections; they are not covered here.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| s.107 | As printed above | Not amended |
| s.109(a) | Balance-sheet "as at the end of every cooperative year" | "as at the end of every financial year" |
| s.3(i) and s.3(ka) | "cooperative year" defined in clause (i) | Clause (i) omitted; "financial year" defined in new clause (ka) |
Need help with accounts, registers or the annual meeting?
Keeping the registers at the registered office and the accounts ready for the annual general meeting are basic duties, and an error in either shows up quickly in an inspection or a return. Our team can review your records and the meeting steps with you through legal consultation.
Key takeaways
- The register of members, index of members, register of debenture holders and copies of annual returns are kept at the registered office.
- Members and debenture holders inspect without fee; others pay a prescribed sum; not less than two hours a day must be allowed.
- The board lays a balance-sheet as at the end of every financial year and a profit and loss account for that year.
- "Financial year" now ends on 31 March, or another day with the Central Registrar's previous sanction.
- Other sections still say "cooperative year" as printed.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Section 120: filing of annual returns
- Section 39: annual general meeting of the general body
- Sections 106 and 106A: Co-operative Information Officer and inspection of bye-laws
Disclaimer: Based on the Ministry of Cooperation copy of the Multi-State Co-operative Societies Act, 2002 read with the Multi-State Co-operative Societies (Amendment) Act, 2023 (in force from 3 August 2023), as consulted on 2 October 2026. The Multi-State Co-operative Societies Rules, 2002 as amended, later notifications and later amendments are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.