Producer company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2010 Dear All,
Good Morning.
Please provide me details of formation of produer comapny under companies act 1956, their main object etc.
Thanks in advance.

CS Richa Sharma

CS Richa Sharma (Expert)
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09 September 2010 Formation of Producer Company:
A Producer Company can be formed in Two Ways:
1)By incorporation and registration as a Producer Company u/s 581C directly.
*For direct formation and registration of a Producer Company, one needs to have:
-Ten(10) or more individuals, each of them being a Producer
OR
-Any Two (2) or more Producer Institutions,
OR
-A combination of Ten (10) or more individuals and Producer Institutions.
These producers or producer institutions must be desirous of forming a producer company and must also have objects specified in Section 581B and also otherwise comply with the requirements of Part IXA and the provisions of the Companies Act, 1956 in respect of registration and form an incorporated Company as a Producer Company under the said Act.

2)By making an application to the Registrar of Companies for registered as a Producer Company under Part IXA by any Inter-State Co-operative Society u/s 581J.
*Inter-State Corporative Society with objects not confined to one State if intends to to be registered as a Producer Company must take an Application form the Registrar of companies of the State in which it wants to be registered.
The said Application should be accompanied by:
- A copy of the Special Resolution
-A Statement showing Names and Addresses or the Occupation of its Directors and Chief Executive
-A List of its Members.
-(it should also accompany ) A Statement indicating that such Society is engaged in any one(1) or more of the objects specified in Section 581B
AND
-A Declaration by Two(2) or more Directors of the said Society Certifying that the aforesaid particulars given are correct.

CS Richa Sharma

CS Richa Sharma (Expert)
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09 September 2010 Section 581B: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 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 communication 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.

(2) Every Producer Company shall deal primarily with the produce of its active Members for carrying out any of its objects specified in this section.

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