"Producer Company" means a body corporate having objects or activities specified in section 378B and registered as Producer Company under this Act or under the Companies Act, 1956. Producer Company is governed by CHAPTER XXIA of Companies Act, 2013
OBJECTS OR ACTIVITIES SPECIFIED IN SECTION 378B
(a) Production, harvesting, procurement, grading, pooling, handling, marketing, selling, the export of primary produce of the Members or import of goods or services for their benefit: Provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution;
(b) Processing including preserving, drying, distilling, brewing, venting, canning, and packaging of the produce of its Members;
(c) Manufacture, sale, or supply of machinery, equipment, or consumables mainly to its Members;
(d) Providing education on the mutual assistance principles to its members and others;
(e) Rendering technical services, consultancy services, training, research and development, and all other activities for the promotion of the interests of its Members;
(f) Generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation, and communications relatable to primary produce;
(g) Insurance of producers or their primary produce;
(h) Promoting techniques of mutuality and mutual assistance;
(i) Welfare measures or facilities for the benefit of Members as may be decided by the Board;
(j) any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i) or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner;
(k) financing of procurement, processing, marketing, or other activities specified in clauses (a) to (j) which include extending of credit facilities or any other financial services to its Members.’’
NO OF MEMBERS-(ANY ONE OF FOLLOWING)
Note: it will always remain a private limited company without any limit of no of members.
BOARD OF DIRECTOR
DONATION OR SUBSCRIPTION
Any producer company can make a donation and subscription of a Maximum of 3 % of the net profit to any institution or individual by the way of special resolution for the purposes of—
(a) Promoting the social and economic welfare of Producer Members or producers or the general public, or (b) promoting the mutual assistance principles
LOANS TO MEMBERS AND INVESTMENT
BENEFITS TO MEMBERS.
378E. (1) Subject to the provisions made in articles, every Member shall initially receive only such value for the product or products pooled and supplied as the Board of Producer Company may determine, and the withheld price may be disbursed later in cash or in-kind or by allotment of equity shares, in proportion to the products supplied to the Producer Company during the financial year to such extent and in such manner and subject to such conditions as may be decided by the Board.
(2) Every Member shall, on the share capital contributed, receive only a limited return: Provided that every such Member may be allotted bonus shares in accordance with the provisions contained in section 378ZJ.
(3) The surplus if any, remaining after making provision for payment of limited return and reserves referred to in section 378ZI, may be disbursed as patronage bonus, amongst the Members, in proportion to their participation in the business of the Producer Company, either in cash or by way of allotment of equity shares, or both, as may be decided by the Members at the general meeting
DOCUMENTS REQUIRED FOR THE INCORPORATION OF PRODUCER COMPANY
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