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A Producer Company is a group of people involved in the production of

primary fruit and vegetables or having several goals associating with


main produce. In a producer company, you can make agriculturist members
and allow deposits in type of FD/RD and offer them maturity in addition
to distribute loans to your farmer members and charge interest from them.
A group of ten/more individuals or two/more producer organizations or a
combination of ten/more people 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 needed for development of a Producer
Company is Rupees 5 Lakhs just
3. Minimum 10 individuals or 2 producer institutions or any combination
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 necessary for a Producer Company.
6. A Producer Company can have a maximum of fifteen directors
7. The period of holding of workplace of the directors of a Producer
Company shall vary from one year to five years subject to the
arrangements made in the Articles of Association.
8. The first directors should be elected by the customers to the
memorandum and posts of association within ninety days from the date of
producer company registration.
9. The directors aside from the very first directors shall be chosen or
selected by the members in their AGM or annual general body meeting.
10. The Producer Company can under no situtation end up being a
considered public business
11. In case of Producer Company making up only of individual members or
mix of individual members and producer institutions, then the voting
rights shall be thought about on one vote per member
12. In case of Producer Company consisting only of producer institutions,
then the voting rights will be thought about on the involvement in
business of the Producer Company in the previous year.
13. The Producer company can limit the ballot rights to just 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 fulfill at least
one in every three months and at least four such meetings shall be held
in every year
15. The First AGM or yearly general meeting of the Producer Company will
be held within ninety days from the date of its incorporation.
16. A Producer Company is needed to designate a full-time secretary if
its average annual turnover goes beyond Rupees Five Crores in each of the
3 consecutive fiscal years
17. The maximum amount of dividend (restricted return) that can be paid
by a Producer Company is identified by its Articles of Association.

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