July 2023

Disputes (1) Where any dispute relating to the formation, management or business of a Producer Company arises- (a) amongst Members, former Members or persons claiming to be Members or nominees of deceased Members; or (b) between a Member, former Member or a person claiming to be a Member, or nominee of deceased Member and the […]

Amalgamation, merger or division, etc, to form new Producer Companies (1) A Producer Company may, by a resolution passed at its general meeting,- (a) decide to transfer its assets and liabilities, in whole or in part, to any other Producer Company, which agrees to such transfer by a resolution passed at its general meeting, for

Penalty for contravention (1) If any person, other than a Producer Company registered under this Chapter, carries on business under any name which contains the words “Producer Company Limited”, he shall be punishable with fine which may extend to ten thousand rupees for every day during which such name has been used by him. (2)

Loan, etc, to Members The Board may, subject to the provisions made in articles, provide financial assistance to the Members of the Producer Company by way of- (a) credit facility, to any Member, in connection with the business of the Producer Company, for a period not exceeding six months; (b) loans and advances, against security specified

Issue of bonus shares Any Producer Company may, upon recommendation of the Board and passing of resolution in the general meeting, issue bonus shares by capitalisation of amounts from general reserves referred to in section 378Z-I in proportion to the shares held by the Members on the date of the issue of such shares] Amendment

General and other reserves (1) Every Producer Company shall maintain a general reserve in every financial year, in addition to any reserve maintained by it as may be specified in articles. (2) In a case where the Producer Company does not have sufficient funds in any financial year for transfer to maintain the reserves as may be specified

Donation or subscription by Producer Company A Producer Company may, by special resolution, make donation or subscription to any institution or individual for the purposes of- (a) promoting the social and economic welfare of Producer Members or producers or general public; or (b) promoting the mutual assistance principles: Provided that the aggregate amount of all

Duties of auditor under this Chapter Without prejudice to the provisions contained in section 143, the auditor shall report on the following additional matters relating to the Producer Company, namely:- (a) the amount of debts due alongwith particulars of bad debts, if any; (b) the verification of cash balance and securities; (c) the details of assets

Internal Audit Every Producer Company shall have internal audit of its accounts carried out, at such interval and in such manner as may be specified in articles, by a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949.] Amendment 1. Inserted by Companies(Amendment) Act 2020 Dated 29.09.2020Amendment Effective from 11th February

books of account (1) Every Producer Company shall keep at its registered office proper books of account with respect to- (a) all sums of money received and expended by the Producer Company and the matters in respect of which the receipts and expenditure take place; (b) all sales and purchase of goods by the Producer Company; (c)