A producer company is a group of individuals associated with the production of primary fruit and vegetables or having one or more goals associating with main produce.
In a producer company, you can make agriculturist members and allow deposits in form of FD/RD and supply them maturity along with disperse loans to your farmer members
and charge interest from them. A group of ten/more people or two/more producer institutions or a combination of ten/more individuals and producer institutions can
register as a Producer Company on the condition that:
1. Producer Company can have just equity share capital
2. The minimum paid-up capital required for formation of a Producer Company is Rupees 5 Lakhs only
3. Minimum ten individuals or more producer institutions or any mix of ten people and producer organizations are needed for integrating a Producer Company
4. There is no limitation on the optimum number of members of a Producer Company
5. Minimum 5 directors are essential for a Producer Company.
6. A Producer Company can have an optimum of fifteen directors
7. The duration of holding of workplace of the directors of a Producer Company will range from one year to five years subject to the arrangements made in the Articles
8. The first directors must be elected by the subscribers to the memorandum and posts of association within ninety days from the date of producer company registration.
9. The directors besides the very first directors shall be elected or appointed by the members in their AGM or yearly basic body meeting.
10. The Producer Company can under no situtation become a considered public business
11. In case of Producer Company consisting of only of individual members or combination of individual members and producer institutions, then the ballot rights will be
considered on one vote per member
12. In case of Producer Company consisting only of producer institutions, then the ballot rights shall be thought about on the involvement in business of the Producer
Company in the previous year.
13. The Producer company can limit the voting rights to only its active members on the condition that it is licensed by its Articles of Association
14. The Board of Directors of the Producer Company will meet at least one in every three months and a minimum of 4 such conferences shall be kept in every year
15. The First AGM or yearly basic meeting of the Producer Company shall be held within ninety days from the date of its incorporation.
16. If its average annual turnover goes beyond Rupees Five Crores in each of the 3 consecutive monetary years, a Producer Company is required to appoint a full-time
17. The maximum quantity of dividend (restricted return) that can be paid by a Producer Company is figured out by its Articles of Association.
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