PRODUCER COMPANY REGISTRATION :-

       Producer institution means a Producer Company Registration in Coimbatore or some other establishment having just maker or makers or Producer Company or Producer Companies as its part whether joined or not having any of the items alluded to in segment 581B and which consents to utilize the administrations of the Producer Company or Producer Companies as gave in its articles.

OBJECTS OF PRODUCER COMPANY:-

(1) The objects of the Producer Company shall relate to all or any of the following matters, namely : -

(a) 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 Registration in Coimbatore may carry on any of the activities specified in this clause either by itself or through other institution ;

(b) processing including preserving, drying, distilling, brewing, vinting, canning and packaging 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 and others ;

(e) rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members ;

(f) generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communications relatable to primary produce ; (g) insurance of producers or their primary produce ;

(h) promoting techniques of mutuality and 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 and mutual assistance amongst the Members in any other manner ; (k) 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.

FORMATION OF PRODUCER COMPANY AND ITS REGISTRATION:-

(1) 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 Registration having its objects specified in section 581B and otherwise complying with the requirements of this Part and the provisions of this Act in respect of registration, may form an incorporated Company as a Producer Company under this Act.

(2) 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.

(3) A Producer Company Registration 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.

(4) 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.

(5) On registration under sub-section (1), the Producer Company Registration shall become a body corporate as if it is a private limited company to which the provisions contained in this Part apply, without, 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.

MEMBERSHIP AND VOTING RIGHTS OF MEMBERS OF PRODUCER COMPANY:-

(1) (a) In a case where the membership consists solely of individual members, the voting rights shall be based on a single vote for every Member, irrespective of his shareholding or patronage of the Producer Company.

(b) In a case where the membership consists of Producer Company Registration institutions only, the voting rights of such Producer institutions shall be determined on the basis of their participation in the business of the Producer Company in the previous year, as may be specified by articles :

Provided that during the first year of registration of a Producer Company Registration , the voting rights shall be determined on the basis of the shareholding by such Producer institutions.

(c) In a case where the membership consists of individuals and Producer institutions, the voting rights shall be computed on the basis of a single vote for every Member.

(2) The articles of any Producer Company Registration may provide for the conditions, subject to which a Member may continue to retain his membership, and the manner in which voting rights shall be exercised by the Members.

(3) Notwithstanding anything contained in sub-section (7) or sub-section(2), any Producer Company may, if so authorised by its articles, restrict the voting rights to active Members, in any special or general meeting.

(4) No person, who has any business interest which is in conflict with business of the Producer Company Registration, shall become a Member of that Company.

(5) A Member, who acquires any business interest which is in conflict with the business of the Producer Company, shall cease to be a Member of that Company and be removed as a Member in accordance with articles.