A producer company is a body corporate which is governed by the provisions under chapter IXA (Section 581A to 581ZL) of Companies Act, 1956 (CA, 2013 doesn’t have any specific provision about producer companies therefore Chapter IXA of Companies Act, 1956 has not been repealed). Producer Company can only be incorporated for pursuing objects under section 581B of Companies Act, 1956 which has been explained in detail later in the article. Producer Company can be formed only by producer.
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 communications 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.
FORMATION OF PRODUCER COMPANY:
- Any 10 or more individual producer;
- Any 2 or more producer institution;
- A Combination of 10 or more individual producer and producer institutions can form a producer company.
INCORPORATION OF PRODUCER COMPANY:
- A Producer Company can be incorporated through SPICe.
- E-MOA and E-AOA shall not be applicable for producer companies. Scanned copy of signed MOA and AOA shall be attached with SPICe.
- DIN of directors can be allotted through SPICe
Documents required to be attached in SPICe:
- DIR-2 of the Proposed Directors
- Affidavit from the 1st directors regarding non-acceptance of deposits by the Company.
- INC-9 duly signed by each subscriber and first directors to the memorandum.
- Proof of registered office address.
- Proof of Identity (Voter ID/Driving License/Passport) and Residence (Bank Statement/Electricity Bill/Telephone bill not older than 2 months) of subscribers/Directors not having DIN.
- Duly signed MOA and AOA.
- List of subscribers duly signed.