Section 378E: Benefits to Members
This section is for outlining the benefits that members of a Producer Company can receive.
The section, clause by clause
What the section says
In plain terms
(1)Subject to the provisions made in articles, every Member shall initially receive only such value for the produce or products pooled and supplied as the Board of Producer Company may determine, and the withheld price may be disbursed later in cash or in kind or by allotment of equity shares, in proportion to the produce supplied to the Producer Company during the financial year to such extent and in such manner and subject to such conditions as may be decided by the Board.
Every member will initially receive a determined value for their produce or products, with the possibility of additional payment later in cash, kind, or equity shares, based on the amount supplied during the financial year.
(2)Every Member shall, on the share capital contributed, receive only a limited return:
Members will receive a limited return on their share capital contribution, with the possibility of bonus shares.
provisoProvided that every such Member may be allotted bonus shares in accordance with the provisions contained in section 378ZJ.
(3)The surplus if any, remaining after making provision for payment of limited return and reserves referred to in section 378ZI, may be disbursed as patronage bonus, amongst the Members, in proportion to their participation in the business of the Producer Company, either in cash or by way of allotment of equity shares, or both, as may be decided by the Members at the general meeting.
Any surplus remaining after payments and reserves will be distributed amongst members as a patronage bonus, in proportion to their business participation, either in cash or equity shares, as decided by the members.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
This section refers to
Search the whole Act, or ask it a question, in the interactive browser.
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.