Section 378W: Chief Executive and his functions
This section is for outlining the role and responsibilities of the Chief Executive in a Producer Company.
The section, clause by clause
What the section says
In plain terms
(1)Every Producer Company shall have a full time Chief Executive, by whatever name called, to be appointed by the Board from amongst persons other than Members.
Every Producer Company must have a full-time Chief Executive appointed by the Board from people who are not Members.
(2)The Chief Executive shall be ex officio director of the Board and such director shall not retire by rotation.
The Chief Executive will automatically be a director of the Board and will not have to retire by rotation.
(3)Save as otherwise provided in articles, the qualifications, experience and the terms and conditions of service of the Chief Executive shall be such as may be determined by the Board.
The Chief Executive's qualifications, experience, and terms of service will be decided by the Board, unless the company's articles say otherwise.
(4)The Chief Executive shall be entrusted with substantial powers of management as the Board may determine.
The Chief Executive will have significant management powers as determined by the Board.
(5)Without prejudice to the generality of sub-section (4), the Chief Executive may exercise the powers and discharge the functions, namely:—
The Chief Executive's responsibilities may include managing daily affairs, operating bank accounts, maintaining accounts, and making appointments, among other tasks.
(5)(a)do administrative acts of a routine nature including managing the day-to-day affairs of the Producer Company;
(5)(b)operate bank accounts or authorise any person, subject to the general or special approval of the Board in this behalf, to operate the bank account;
(5)(c)make arrangements for safe custody of cash and other assets of the Producer Company;
(5)(d)sign such documents as may be authorised by the Board, for and on behalf of the company;
(5)(e)maintain proper books of account; prepare annual accounts and audit thereof; place the audited accounts before the Board and in the annual general meeting of the Members;
(5)(f)furnish Members with periodic information to apprise them of the operation and functions of the Producer Company;
(5)(g)make appointments to posts in accordance with the powers delegated to him by the Board;
(5)(h)assist the Board in the formulation of goals, objectives, strategies, plans and policies;
(5)(i)advise the Board with respect to legal and regulatory matters concerning the proposed and ongoing activities and take necessary action in respect thereof;
(5)(j)exercise the powers as may be necessary in the ordinary course of business;
(5)(k)discharge such other functions, and exercise such other powers, as may be delegated by the Board.
(6)The Chief Executive shall manage the affairs of the Producer Company under the general superintendence, direction and control of the Board and be accountable for the performance of the Producer Company.
The Chief Executive will run the company's affairs under the Board's supervision and be responsible for its performance.
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.
Referred to by
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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.