Section 378 (c): Formation Of Producer Company And Its Registration
Updated: May 9
A Producer Company means a body corporate, having objects or activities as specified and registered as Producer company. It is formed for different objectives they are:
Export of primary produce of members
Packaging of produce of its members
Manufacture, sale of machinery, etc.
Some objectives are mainly to its members:
generation and distribution of power
insurance of producers/primary produce
rendering technical/consultancy services
promoting mutual assistance
welfare measures and
any other activity for the benefit of members.
Provisions under Section 378C of Companies Act, 2013: Formation Of Producer Company And Its Registration
Section 378C (1) of Companies Act:
Any ten or more individuals, each of them being a producer or any two or more Producer Institutions, or a combination of ten or more individuals and Producer Institutions, desirous of forming a Producer Company having its object specified in section 378B and otherwise complying with the requirements of this Chapter and the provisions of this Act in respect of registration, may form an incorporated company as a Producer Company under this Act.
Section 378C (2) of Companies Act:
If the Registrar is satisfied that all the requirements of this Act have been complied with in respect of registration and matters precedent and incidental thereto, he shall within thirty days of the receipt of the documents required for registration, register the memorandum, the articles and other documents, if any, and issue a certificate of incorporation under this Act.
Section 378C (3) of Companies Act:
A Producer Company so formed shall have the liability of its members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them and be termed a company limited by shares.
Section 378C (4) of Companies Act:
The Producer Company may reimburse to its promoters all other direct costs associated with the promotion and registration of the company including registration, legal fees, printing of a memorandum and articles and the payment thereof shall be subject to the approval at its first general meeting of the members.
Section 378C (5) of Companies Act:
On registration under sub-section (2), the Producer Company shall become a body corporate as if it is a private limited company to which the provisions contained in this chapter apply, however, any limit to the number of members thereof, and the Producer Company shall not, under any circumstance, whatsoever, become or be deemed to become a public limited company under this Act.