Farmers have been subjected to face a lot of issues relating to not getting a fair price for th...
Ans.: Producer Company is the company registered under the Companies Act 2013. It is incorporated with the objective of harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary products of its members and import of goods or services for the benefit of its members.
Produce are all those things that have been produced or grown especially by the process of farming. A producer company deals primarily with agriculture and post-harvest processing activities.
The concept of Producer Company is based on empowering farmers by creating clusters of farmers organized as a Producer Company.
Ans.: There are following types of Producer Company:
Ans.: A Producer Company can be formed in the following ways:
If any member ceases to be a primary producer he is entitled to surrender his shares.
Ans.: For the Registration of Producer Company a minimum of 5 Directors are required and the maximum number of Directors can be 15.
Ans.: The Minimum period for directorship is 1 year and the maximum is for 5 years. But the retired director shall be eligible for appointment.
Ans.: Minimum authorized capital required for the formation of Producer Company is Rs. 5 Lakhs.
Ans.: The minimum number of Board Meetings required in a Producer company is 4 and not more than 3 months gap should be there between two Board Meetings.
The quorum for such Board meeting will be 1/3rd of the total strength or 3 whichever is greater.
Ans.: Every Producer company having an average annual turnover exceeding Rs. 5 crore in each consecutive 3 financial years shall compulsorily appoint whole-time Company Secretary.
Ans.: Advantage of forming a Producer companies:
Ans.: Usually, 35-40 working days are required in the formation of the Producer Company.
Read our article: Producer Company: Incorporation Requirements, Tax benefits and much more