The Companies Act defines Producer as any person engaged in any activity connected with or relatable to any primary produce. A Producer Company is thus a body corporate having an object that is one or all of the following:
– 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.
Producer Companies are allow to carry on any of the following activities by itself or through other entities-on behalf of the members.
1. To carry on business of production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of Members or import of goods or services for their benefit;
2. To carry on manufacturing, selling or supplying of machineries, equipment’s or consumables mainly to its members;
3. To provide education on the mutual assistance principles to its members and others;
4. To render technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members;
5. To generate transmit and distribute the power, revitalization of land and water resources, their use, conservation and communication relatable to primary produce;
6. To carry on business of insurance of producers or their primary produce;
7. To extend the credit facilities or any other financial services to its members for the activities specified above;
8. Ancillary, incidental or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner;
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Registration Requirements of Producer Company
Any of the following combination of producers can incorporate a producer company:
- Ten or more producers (individuals); or
- Two or more producer institutions; or
- Combination of the above two.
Producer Company on incorporation shall become a Body corporate as a Private Limited Company and such Producer Company shall not become or deemed to become a Public Limited Company under this Act.
Documents Required for Producer Company Registration
KYC of all Directors and Subscribers
- PAN card of the Directors and Subscribers
- Copy of Utility Bills for the registered office of the Company
- Rent agreement if the registered office not owned by Company
- Memorandum of Association in physical form signed by Subscribers
- Articles of Association in physical form signed by subscribers
- Declaration given by first Directors and Subscribers in the form INC-9
- Consent by Directors in DIR-2 (Minimum 5)
Management of Producer Company
1. The Producer Company shall have at least 5 directors and not more than 15 directors.
2. The Directors of producer Company shall hold office for a period of not less than one year but which shall not exceed five years
3. The Directors is appointed by the members in Annual General Meeting.
4. Every Producer Company shall have a full time Chief Executive Officer to be appointed by Board.
5. The Directors of the Board are elected within 90 days from the date of Incorporation by the members in the Annual General Meeting.
6. Every Producer Company having an average annual turnover of five crore rupees or more in three consecutive financial years shall have a whole-time Company Secretary.
7. The Company can appoint Additional Director and Expert Director which shall not exceed 1/5th of the total number of directors subject to articles of association of the Company.
Members of Producer Company
1. The Producer Company will consist of equity shares only.
2. The Shares of the Company are transferable subject to the approval of Board.
3. In the event of Death, the shares shall be transferred automatically to the nominee appointed by the Member.
4. The Member shall nominate the person within 3 months of becoming a member of the
5. The voting rights in Producer Company is based on a single vote for every member.
Meeting of Producer Company
1. A Producer Company shall hold its annual general meeting within a period of ninety days from the date of its incorporation, and not more than fifteen months shall elapse between the date of one annual general meeting and that of the next Annual General Meeting.
2. The Company may take the extension from the Registrar for holding an annual general meeting by a period not exceeding three months.
3. The general meeting of the Producer Company shall be called by giving not less than fourteen days prior notice in writing.
4. The quorum of General meeting will be one-fourth of the total number of members.
5. The Members will be eligible to receive bonus shares.
6. The Board shall hold four meeting in every year with the gap of not more than three months between two meetings.
7. The Chief Executive shall give notice for the board meeting at least 7 days before the Meeting, meeting can be called with shorter notice but the reason therof shall be recorded by the Board.
8. The quorum of Board meeting shall be one-third of the total strength of directors, or a minimum of three Directors.
9. The Directors Report, the audited balance sheet and profit and loss account shall be filed with ROC within 60 days of the date of AGM.
Other Compliances of Producer Company
1. If there is any alteration in Article of Association, the resolution shall be approved by at least 2/3rd of the elected directors or 1/3rd of the members.
2. The copy of altered MOA and AOA shall be filed with ROC within 30 days of alteration.
3. Every Producer Company shall maintain a general reserve in every financial year, in case where the Producer Company does not have sufficient funds in any financial year for transfer to maintain the reserves as may be specified in articles, the contribution to the reserve shall be shared amongst the Members
4. Every Producer Company shall have internal audit of its accounts carried according to articles of Company, by a Chartered Accountant.
5. The Registrar shall strike the name of the Producer Company if the company fails to commence its business within one year from the date of registration.
Author Bio
Dear Maam,
Please clear my confusion on following 2 situation,
1) If producer company incorporated on or before 31st December like 15th December 2023 and first AGM held within 90 days then what is the due date for second AGM.
2) If producer company incorporated after 31st December like 15th January 2024 and first AGM held within 90 days then what is the due date for second AGM.