Section 378C: Formation of Producer Company and its registration
This section is for the formation and registration of a Producer Company under the Act.
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What the section says
In plain terms
(1)Any ten or more individuals, each of them being a producer or any two or more Producer Institutions, or a combination of ten or more individuals and Producer Institutions, desirous of forming a Producer Company having its objects specified in section 378B and otherwise complying with the requirements of this Chapter and the provisions of this Act in respect of registration, may form an incorporated company as a Producer Company under this Act.
Ten or more individuals who are producers, or two or more Producer Institutions, or a combination of both, can form a Producer Company if they meet the requirements of this Chapter and the Act.
(2)If the Registrar is satisfied that all the requirements of this Act have been complied with in respect of registration and matters precedent and incidental thereto, he shall, within thirty days of the receipt of the documents required for registration, register the memorandum, the articles and other documents, if any, and issue a certificate of incorporation under this Act.
The Registrar will register the company within 30 days of receiving the required documents if all requirements are met and issue a certificate of incorporation.
(3)A Producer Company so formed shall have the liability of its Members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them and be termed a company limited by shares.
A Producer Company has limited liability for its members, with each member's liability limited to the amount unpaid on their shares.
(4)The Producer Company may reimburse to its promoters all other direct costs associated with the promotion and registration of the company including registration, legal fees, printing of a memorandum and articles and the payment thereof shall be subject to the approval at its first general meeting of the Members.
The company can reimburse its promoters for costs associated with promotion and registration, subject to approval at the first general meeting.
(5)On registration under sub-section (2), the Producer Company shall become a body corporate as if it is a private limited company to which the provisions contained in this Chapter apply, without, however, any limit to the number of Members thereof, and the Producer Company shall not, under any circumstance, whatsoever, become or be deemed to become a public limited company under this Act.
After registration, the Producer Company becomes a body corporate like a private limited company, but without a limit on the number of members and will not become a public limited company.
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.