Section 378ZB The Companies Act, 2013

Section 378ZB The Companies Act, 2013

Share capital

(1) The share capital of a Producer Company shall consist of equity shares only.

(2) The shares held by a Member in a Producer Company, shall as far as may be, be in proportion to the patronage of that company.

Special user rights.

378ZC. (1) The producers, who are active Members may, if so provided in the articles, have special rights and the Producer Company may issue appropriate instruments to them in respect of such special rights.

(2) The instruments of the Producer Company issued under sub-section (1) shall, after obtaining approval of the Board in that behalf, be transferable to any other active Member of that Producer Company.

Explanation-For the purposes of this section, the expression “special right_CPA” means any right relating to supply of additional produce by the active Member or any other right relating to his produce which may be conferred upon him by the Board.]

Amendment

1. Inserted by Companies(Amendment) Act 2020 Dated 29.09.2020Amendment Effective from 11th February 2021