Section 378R: Powers and functions of Board
This section is for outlining the powers and functions of the Board of Directors of a Producer Company.
The section, clause by clause
What the section says
In plain terms
(1)Subject to the provisions of this Act and articles, the Board of Directors of a Producer Company shall exercise all such powers and to do all such acts and things, as that Company is authorised so to do.
The Board of Directors of a Producer Company has the power to make decisions and take actions on behalf of the company, as long as they are allowed to do so by the company's articles and this Act.
(2)In particular and without prejudice to the generality of the foregoing powers, such powers may include all or any of the following matters, namely:—
The Board's powers include things like deciding on dividends, admitting new members, appointing a Chief Executive, keeping accounting records, and making investments, among other things.
(2)(a)determination of the dividend payable;
(2)(b)determination of the quantum of withheld price and recommend patronage to be approved at general meeting;
(2)(c)admission of new Members;
(2)(d)pursue and formulate the organisational policy, objectives, establish specific long-term and annual objectives, and approve corporate strategies and financial plans;
(2)(e)appointment of a Chief Executive and such other officers of the Producer Company, as may be specified in the articles;
(2)(f)exercise superintendence, direction and control over Chief Executive and other officers appointed by it;
(2)(g)cause proper books of account to be maintained; prepare annual accounts to be placed before the annual general meeting with the report of the auditor and the replies on qualifications, if any, made by the auditors;
(2)(h)acquisition or disposal of property of the Producer Company in its ordinary course of business;
(2)(i)investment of the funds of the Producer Company in the ordinary course of its business;
(2)(j)sanction any loan or advance, in connection with the business activities of the Producer Company to any Member, not being a director or his relative;
(2)(k)take such other measures or do such other acts as may be required in the discharge of its functions or exercise of its powers.
(3)All the powers specified in sub-sections (1) and (2) shall be exercised by the Board, by means of resolution passed at its meeting on behalf of the Producer Company.
The Board can only make decisions and take actions on behalf of the company by passing resolutions at its meetings.
explanationExplanation.—For the removal of doubts, it is hereby declared that a director or a group of directors, who do not constitute the Board, shall not exercise any of the powers exercisable by it.
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.
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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.