A Producer Company itself is a unique kind of the corporation registered under the Companies Act, 2013. In legal terms, the Producer Company is a body of agriculturists/ Farmers with the ultimate aim of improving and upgrading their standard of living.
A Company is registered as Producer Company, if it has one of the following as it is business objective- post-harvesting, procurement, grading, pooling, handling, marketing, selling, and exports of the primary products of members. Further to promote profits of its member, this Company also looks after bringing in the goods and services.
Initially, the provisions of the companies act, 1956 applied to the Producer Company. But, after the amendment in the said act, section 465 subsection 1 of the Companies Act, 2013 clearly states that the all the provisions regarding Producer Company contained in the Company Act, 1956 shall be mutatis mutandis to a Producer Company. Hence, the objectives of a Producer Company are defined under section 581B of the Companies act, 1956.
Producer Company can be started by a group of ten or more individuals or by the blend of ten or more individuals and two institutions. The ultimate aim of this type of Company is to handle various agricultural activities along with post-harvest processing activities. Producer Company is mostly a group of farmers who team up, firstly to upgrade their standard of living and secondly to improve their earning.
Incorporating an organization as a Producer Company leads to many benefits to both the Company and its member. Read More