- Anupama Tripathi
- | Company Law - Articles
- 02 Jul 2021
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Introduction of Producer Company, Incorporation, Compliance & Eligibility Under Companies Act, 2013
Producer Company is governed under provision of Companies Act, 1956 as the Companies Act, 2013 itself states in Section 465(1) that provision of Producer Company shall be as per Part IX A of the Companies Act, 1956.
Now as per Companies Act, 1956 “Producer Company” means a body corporate having objects or activities specified in section 581B and registered as Producer Company under this Act.
Objects of Producer Company as per 581(B):-
(1) The objects of the Producer Company shall relate to all or any of the following matters, namely :
1. Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit: Provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution;
2. Processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its members;
3. Manufacture, sale or supply of machinery, equipment or consumables mainly to its members;
4. providing education on the mutual assistance principles to its members and others;
5. Rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its members;
6. Generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communications relatable to primary produce;
7. Insurance of producers or their primary produce;
8. Promoting techniques of mutuality and mutual assistance;
9. Welfare measures or facilities for the benefit of Members as may be decided by the Board;
10. 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 and mutual assistance amongst the Members in any other manner;
11. Financing of procurement, processing, marketing or other activities specified in clauses (a) to (j) which include extending of credit facilities or any other financial services to its members.
(2) Every Producer Company shall deal primarily with the produce of its active Members for carrying out any of its objects,
INCORPORATION 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.
Incorporation shall be as per incorporation of any Private company by filing of application in SPICE+ Form and with minimum of 5 directors required.
Note: Producer company cannot be a public limited company as per the provisions of Section 378C (5) of the Companies Act, 2013.
DOCUMENTS REQUIRED FOR INCORPORATION THROUGH SPICE+ FORM:
1. Memorandum of Association.
2. Article of Association.
3. Proof of Registered office along with Utility Bill.
4. Consent by Directors in DIR-2 (Minimum 5).
5. Producer Proof i.e., Khasra – Khatuni/ITR with Agriculture Income/Sarpanch letter/Any other proof that can provide person as producer. (Required for all Members)
6. KYC of all Members and Directors.
VARIOUS COMLIANCES BY A PRODUCER COMPANY
- Name of Company shall include “Producer Company Limited” as the last words of the name of such Company.
- Every Producer Company shall have at least five and not more than fifteen directors.
- 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.
- A Producer Company shall hold its first annual general meeting within a period of ninety days from the date of its incorporation
- A general meeting of the Producer Company shall be called by giving not less than fourteen days prior notice in writing.
- The share capital of a Producer Company shall consist of equity shares only and shall be held by members only.
- Every Producer Company having an average annual turnover exceeding five crore rupees in each of three consecutive financial years shall have a whole-time secretary.
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This article is written by team Anupama Tripathi & Associates, Company secretaries for the purpose of education & comment for more you can reach us at: 8800839633 or csanupamatripathi121@gmail.com
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