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    Key Compliances of The Producer Company

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    DHRUV BARUA
    1. The key compliances for a producer company include requirements regarding its name, number of directors, election of directors, share capital structure, annual general meetings, board meetings, appointment of a chief executive and internal audit. 2. Some key points are that the company name must end with "Producer Company Limited", there must be a minimum of 5 and maximum of 15 directors, shares can only be held by members and are not transferable, an annual general meeting must be held every 15 months, and the company must appoint a full-time chief executive and conduct internal audits. 3. Non-compliance with requirements such as holding annual general meetings, appointing a chief executive or

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    Key Compliances of The Producer Company

    Uploaded by

    DHRUV BARUA
    67 views4 pages
    1. The key compliances for a producer company include requirements regarding its name, number of directors, election of directors, share capital structure, annual general meetings, board meetings, appointment of a chief executive and internal audit. 2. Some key points are that the company name must end with "Producer Company Limited", there must be a minimum of 5 and maximum of 15 directors, shares can only be held by members and are not transferable, an annual general meeting must be held every 15 months, and the company must appoint a full-time chief executive and conduct internal audits. 3. Non-compliance with requirements such as holding annual general meetings, appointing a chief executive or

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    KEY COMPLIANCES OF THE PRODUCER COMPANY

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    1. The key compliances for a producer company include requirements regarding its name, number of directors, election of directors, share capital structure, annual general meetings, board meetings, appointment of a chief executive and internal audit. 2. Some key points are that the company name must end with "Producer Company Limited", there must be a minimum of 5 and maximum of 15 directors, shares can only be held by members and are not transferable, an annual general meeting must be held every 15 months, and the company must appoint a full-time chief executive and conduct internal audits. 3. Non-compliance with requirements such as holding annual general meetings, appointing a chief executive or

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    67 views4 pages

    Key Compliances of The Producer Company

    Uploaded by

    DHRUV BARUA
    1. The key compliances for a producer company include requirements regarding its name, number of directors, election of directors, share capital structure, annual general meetings, board meetings, appointment of a chief executive and internal audit. 2. Some key points are that the company name must end with "Producer Company Limited", there must be a minimum of 5 and maximum of 15 directors, shares can only be held by members and are not transferable, an annual general meeting must be held every 15 months, and the company must appoint a full-time chief executive and conduct internal audits. 3. Non-compliance with requirements such as holding annual general meetings, appointing a chief executive or

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    KEY COMPLIANCES OF THE PRODUCER COMPANY:

    Sl.
    Particulars Section Provisions
    No
    1 Name of the Section Name of the company shall end with the
    company 581F(a) words "Producer Company Limited"
    2 Number of the Section 581P Minimum- 5 Directors
    Directors Maximum- 15 Directors
     
    In case of an inter-State co-operative society
    incorporated as a Producer Company, such
    company may have more than 15 directors for a
    period of 1 year from the date of its incorporation
    as a Producer Company.
    3 Election of the Section The election of directors shall be conducted within
    Directors 581P(2) a period of ninety days of the registration of the
    Producer Company. “Inter-State co-operative
    society incorporated as Producer Company can
    avail privileges of 365 days had been substituted
    instead of 90 days as provided to other
    companies”.
    4 Additional Section Expert directors or an additional director may be
    Directors and 581P(6) co-opted but shall not exceed 1/5th of the total
    Expert number of directors subject to articles of
    Directors association.
    Such expert directors shall not have the right to
    vote in the election of the Chairman but are eligible
    to be elected as a Chairman.
    5 A Private Section On registration under Section 581 C (1), the
    Company 581C(5) Producer Company shall become a body
    corporate as if it is a private limited company to
    which the provisions contained in this Part apply.
    It cannot become or deemed to become a public
    limited company.
    6 Share Capital Section The Producer Company shall consist of equity
    and transfer of 581ZB shares only.
    the shares of Section The active members may have special rights if
    Producer 581ZC provided in the Articles.
    Company
    Section The shares shall not be transferrable.  The shares
    581ZD having special rights may be transferred with the
    approval of the Board to another active member.

    Every member shall nominate a person within


    three months on becoming a member of the
    Company.  The nominee shall get all the benefits on
    the death of the member. If the nominee is not a
    producer, the Board shall direct the nominee to
    surrender the shares.
    7 Alteration of Section 581H- By passing Special Resolution Memorandum or
    Memorandum MoA Articles of the company can be altered, but
    of association Section 581I- alteration of MoA or AoA shall not be inconsistent
    and Articles of AoA with Section 581B.
    Association In case of alteration of Articles- It has to be
    proposed by not less than 2/3rd of the elected
    directors or by not less than  1/3rd of the Members
    and adopted by special resolution.

    Copy of the altered MoA or AOA alongwith the copy


    of the special resolution has to be filed with the
    Registrar within 30days of adoption.
    8 Annual Section- 1. First AGM shall be conducted within 90 days
    General 581ZA from the date of incorporation.
    Meeting 2. The Registrar may permit extension of the
      time for holding Annual General Meeting
    (not being the first annual general meeting)
    Section 581 S by a period not exceeding 3 months.
    3. The Producer Company shall in each year
      hold an Annual General Meeting and not
    more than 15 months shall elapse between
    Section- 581Y the date of one Annual General Meeting to
    the next.
    4. The AGM shall be called by issuing at least
    14 days notice.
    5. The proceedings of every AGM along with
    Directors’ Report, the audited Balance Sheet
    and Profit & Loss Account shall be filed with
    the Registrar within 60 days of AGM.
    The shareholders shall have exclusive rights to be
    exercised in the Annual General Meeting such as:

    a. Approval of budget,
    b. Adoption of annual accounts,
    c. Issue of bonus shares,
    d. Approval of patronage bonus,
    e. Declaration of limited return and decision
    on the distribution of patronage,
    f. Specify the conditions and limits of loans
    that may be given by the Board to any
    director ; and
    g. Approval of any transaction of the nature as
    is to be reserved in the articles for approval
    by the Members.
    Quorum:- 1/4th of the total number of members.
    9 Meetings of Section 581V Board shall meet at least once in every three
    the Board months and at least four such meetings shall be
    Quorum. convened in every year.
    The Chief Executive shall give notice for the board
    meeting at least 7 days in advance of the meeting. 
    Meeting can be called with shorter notice but the
    reasons thereof shall be recorded by the Board.

    Quorum:- 1/3rd of the total strength of Directors


    subject to a minimum - 3

    Penalty: If the Chief Executive fails to comply with


    the provisions of sending notice, he shall be
    punishable with a maximum fine of Rs. 1,000/-.
    10 Chief Section 581W Every producer company shall have a full time
    Executive Chief Executive to be appointed by the Board
    amongst persons other than the members.
    11 Company Section 581X Every Producer Company, having average annual
    Secretary turnover exceeding Rs. 5.00 crores in each of three
    consecutive financial years shall have a whole time
    Company Secretary.
    Penalty for not appointing:

    Company and every officer who is in default, shall


    be punishable with fine a maximum fine of Rs.
    500/- for every day during which the default
    continues.
    12 Internal Audit Section Every Producer Company shall have internal audit
      581ZF of its accounts carried out in such intervals and in
    such manner as specified by its articles, by a
    Chartered Accountant.
    13 General Section 581ZI Every Producer Company shall maintain a general
    Reserve and reserve in every year in addition to the Reserves as
    other reserve may be specified in the Articles.
      If the company does not have sufficient funds in any
    financial year for transfer to maintain the reserves
    as may be specified in articles, the contribution to
    the reserve shall be shared amongst the Members
    in proportion to their patronage in the business of
    that company in that year
    14 Striking of Section The Registrar shall strike the name of the Producer
    name 581ZP Company if the company fails to commence its
    business within one year from the date of
    registration or ceases it transactions after giving a
    notice to the company. Any Member of the
    Producer Company is aggrieved against such order

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