As per sec 465(1)of companies Act ,2013,Producer Company is a group of people engaged in the production of primary produce and body corporate having its objects and activities as specified in section 581 B of companies Act,1956.
Primary produce means produce of farmers, arising from agriculture (including animal husbandry, horticulture, floriculture, pisciculture, viticulture, forestry, forest products, re-vegetation, bee raising and farming plantation products), or from any other primary activity or service which promotes the interest of the farmers or consumers etc.
Incorporation of producer company shall be through spice.
Requirement for registration as a producer company:
- Minimum paid-up capital requirement is Rs. 5 lakh.
- Minimum 5 and maximum 15 directors required for producer company.
- No any restriction for the maximum number of member in producer company.
- Minimum ten individuals or two producer institutions or any combination of ten individuals and producer institutions are required for forming a Producer Company.
- First director shall be appointed by subscribers of the MOA, Within 90 days of incorporation.
- And first AGM of company must be held within 90 days of incorporation.
- Producer company shall never be converted into public company, but it can be converted into multi-state co-operative society.
- Maximum amount of dividend can be paid by as determined by AOA of the company.