July 2023

Transferability of Shares and Attendant Rights in Producer Companies: Understanding Section 378ZD of the Companies Act, 2013 This article delves into Section 378ZD of the Companies Act, 2013, which governs the transferability of shares and attendant rights in producer companies. It aims to simplify the legal jargon and provide a clear understanding for those interested […]

Share capital (1) The share capital of a Producer Company shall consist of equity shares only. (2) The shares held by a Member in a Producer Company, shall as far as may be, be in proportion to the patronage of that company. Special user rights. 378ZC. (1) The producers, who are active Members may, if

Annual general meetings (1) Every Producer Company shall in each year, hold, in addition to any other meetings, a general meeting, as its annual general meeting and shall specify the meeting as such in the notices calling it, and not more than fifteen months shall elapse between the date of one annual general meeting of

Voting rights Save as otherwise provided in sub-sections (1) and (3) of section 378D, every Member shall have one vote and in the case of equality of votes, the Chairman or the person presiding shall have a casting vote except in the case of election of the Chairman.] Amendment 1. Inserted by Companies(Amendment) Act 2020 Dated

Quorum Unless the articles require a larger number, one-fourth of the total membership shall constitute the quorum at a general meeting.] Amendment 1. Inserted by Companies(Amendment) Act 2020 Dated 29.09.2020Amendment Effective from 11th February 2021 Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST

Secretary of Producer Company (1) Every Producer Company having an average annual turnover exceeding five crore rupees or such other amount as may be prescribed in each of three consecutive financial years shall have a whole-time secretary. (2) No individual shall be appointed as whole-time secretary unless he possesses membership of the Institute of Company

Chief Executive and his functions (1) Every Producer Company shall have a full time Chief Executive, by whatever name called, to be appointed by the Board from amongst persons other than Members. (2) The Chief Executive shall be ex officio director of the Board and such director shall not retire by rotation. (3) Save as otherwise provided in articles, the

Meetings of Board and quorum (1) A meeting of the Board shall be held not less than once in every three months and at least four such meetings shall be held in every year. (2) Notice of every meeting of the Board of Directors shall be given in writing to every director for the time being in India, and

Committee of Directors (1) The Board may constitute such number of committees as it may deem fit for the purpose of assisting the Board in the efficient discharge of its functions: Provided that the Board shall not delegate any of its powers or assign the powers of the Chief Executive, to any committee. (2) A