What is a Producer Company?
Formation- any 10 or more producers who are individuals or any 2 or more producer institutions or a combination of 10 or more individuals & producer institutions may incorporate a producer company. Producer - any person engaged in any activity connected with any primary produce. ? Primary produce- produce of farmers arising from agriculture (animal husbandry), bee raising etc. or any other primary activity or service which promotes the interest of farmers or consumers; produce of persons engaged in handloom, handicraft & other cottage industries; by-products or ancillary of the aforesaid activities. ? Producer Institution-means a producer Co or any other institution having only producer/’cers/producer Co as its members & which agrees to make use of the services of producer Co. Features
Liability of members- limited to the amount of any unpaid on the shares held by them. Status- on registration a Producer Co shall become a body corporate as if it is a private limited company without any limit to the number of members thereof and without the use of the word private as part of its name. As per S 581F, the name shall end with ‘Producer Company Ltd’ Reimbursement of property to promoter- with the approval of members at its first general meeting, reimburse to its promoters all direct costs associated with the promotion & registration of the company including registration, legal fees, the printing of MOA & AOA.
Objects/Purpose
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.
(b)Processing including preserving, drying, distilling, brewing, venting, canning & packing of 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 & others
(e)Rendering technical services, consultancy services, training, research & development & all other activities for the promotion of the interest of its members. (f)Generation, transmission & distribution of power, revitalization of land & water resources their use, conservation & communications relatable to primary produce.
(g)Insurance of producers or their primary produce.
(h)Promoting techniques of mutuality & 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 & mutual assistance amongst members in any other manner.
(k)Financing of procurement, marketing or other activities specified in clauses above, which include extending of credit facilities or any other financial services to its members. Membership- Shall be voluntary, available to all eligible persons (No person who has any business interest which is in conflict with the business of the producer company, shall become a member of that company) who can participate or avail the facilities or services of the producer Co & are willing to accept the duties of membership.
Benefits to members- Every member shall receive a limited return on the capital contributed by the members., they could be allotted bonus shares. Surplus if any after making provision for return & reserves, could be utilized for the development of the business of the producer co, providing for common facilities or may be distributed to members as a bonus in proportion to their respective participation in business. This may be given in cash or by way of shares.
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.
