Application of provisions relating to private companies All the limitations, restrictions and provisions of this Act, other than those specified in this Chapter, applicable to a private company, shall, as far as may be, apply to a Producer Company, as if it is a private limited company under this Act in so far as they are not […]

Section 378ZQ of The Companies Act, 2013: Explained in Simple Language What is it? Section 378ZQ is a legal provision within The Companies Act, 2013, specifically addressing Producer Companies. It essentially states that the rules outlined in Chapter XXIA of the Act override any conflicting laws or regulations. In simpler terms: This section ensures that

Strike off name of Producer Company (1) Where a Producer Company fails to commence business within one year of its registration or ceases to transact business with the Members or if the Registrar is satisfied, after making such inquiry as he thinks fit, that the Producer Company is no longer carrying on any of its objects specified

Disputes (1) Where any dispute relating to the formation, management or business of a Producer Company arises- (a) amongst Members, former Members or persons claiming to be Members or nominees of deceased Members; or (b) between a Member, former Member or a person claiming to be a Member, or nominee of deceased Member and the

Amalgamation, merger or division, etc, to form new Producer Companies (1) A Producer Company may, by a resolution passed at its general meeting,- (a) decide to transfer its assets and liabilities, in whole or in part, to any other Producer Company, which agrees to such transfer by a resolution passed at its general meeting, for

Penalty for contravention (1) If any person, other than a Producer Company registered under this Chapter, carries on business under any name which contains the words “Producer Company Limited”, he shall be punishable with fine which may extend to ten thousand rupees for every day during which such name has been used by him. (2)

Loan, etc, to Members The Board may, subject to the provisions made in articles, provide financial assistance to the Members of the Producer Company by way of- (a) credit facility, to any Member, in connection with the business of the Producer Company, for a period not exceeding six months; (b) loans and advances, against security specified

Issue of bonus shares Any Producer Company may, upon recommendation of the Board and passing of resolution in the general meeting, issue bonus shares by capitalisation of amounts from general reserves referred to in section 378Z-I in proportion to the shares held by the Members on the date of the issue of such shares] Amendment

General and other reserves (1) Every Producer Company shall maintain a general reserve in every financial year, in addition to any reserve maintained by it as may be specified in articles. (2) In a case where the Producer Company does not have sufficient funds in any financial year for transfer to maintain the reserves as may be specified

Donation or subscription by Producer Company A Producer Company may, by special resolution, make donation or subscription to any institution or individual for the purposes of- (a) promoting the social and economic welfare of Producer Members or producers or general public; or (b) promoting the mutual assistance principles: Provided that the aggregate amount of all