Producer Company: Companies Act, 2013

Producer Companies under the Companies Act, 2013:

1. Definition: A Producer Company is defined under Section 581A of the Companies Act, 2013 as a company registered under the Act, which has the objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or import of goods or services for their benefit.

2. Membership: Only individuals or producer organizations can become members of a Producer Company. No company, firm, or association of persons can become a member of a Producer Company.

3. Capital: A Producer Company can raise capital through the issue of equity and preference shares, as well as debentures.

4. Board of Directors: The Board of Directors of a Producer Company must have at least five and not more than fifteen directors, elected by the members of the company. At least two-thirds of the directors must be elected by the members, and the remaining directors can be appointed by the Board with the approval of the members.

5. Objects: The objects of a Producer Company include production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the members or import of goods or services for their benefit. The company can also carry out activities related to processing, preservation, and storage of produce of its members.

6. Voting rights: Each member of a Producer Company has one vote, irrespective of the number of shares held by them.

7. Profit distribution: Producer Companies are required to distribute their profits among their members in proportion to their participation in the business of the company.

8. Audit and Compliance: Producer Companies are subject to the same audit and compliance requirements as any other company registered under the Companies Act, 2013. They are required to get their accounts audited annually by a qualified auditor and file annual returns with the Registrar of Companies.

9. Registration: A Producer Company must be registered with the Registrar of Companies under the Companies Act, 2013. The registration process involves filing an application with the Registrar along with the necessary documents and fees.

10. Conversion: A company registered under any other law can be converted into a Producer Company subject to the conditions prescribed under the Companies Act, 2013.

These are some of the key provisions related to Producer Companies under the Companies Act, 2013. The Act also provides for various other provisions related to the management and governance of Producer Companies, their dissolution and winding up, and the rights and duties of their members and directors.