Section 378ZA: Annual general meetings
This section outlines the requirements for annual general meetings of Producer Companies, including the timing, notice, and proceedings of such meetings.
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(1)Every Producer Company shall in each year, hold, in addition to any other meetings, a general meeting, as its annual general meeting and shall specify the meeting as such in the notices calling it, and not more than fifteen months shall elapse between the date of one annual general meeting of a Producer Company and that of the next:
Every Producer Company must hold an annual general meeting each year, with no more than 15 months between meetings, and the Registrar may allow an extension of up to 3 months for special reasons.
provisoProvided that the Registrar may, for any special reason, permit extension of the time for holding any annual general meeting (not being the first annual general meeting) by a period not exceeding three months.
(2)A Producer Company shall hold its first annual general meeting within a period of ninety days from the date of its incorporation.
The first annual general meeting must be held within 90 days of the company's incorporation.
(3)The Members shall adopt the articles of the Producer Company and appoint directors of its Board in the annual general meeting.
Members must adopt the company's articles and appoint directors at the annual general meeting.
(4)The notice calling the annual general meeting shall be accompanied by the following documents, namely:—
The notice for the annual general meeting must include documents such as the agenda, minutes of the previous meeting, candidate information, and financial reports.
(4)(a)the agenda of the annual general meeting;
(4)(b)the minutes of the previous annual general meeting or the extraordinary general meeting;
(4)(c)the names of candidates for election, if any, to the office of director including a statement of qualifications in respect of each candidate;
(4)(d)the audited balance-sheet and profit and loss accounts of the Producer Company and its subsidiary, if any, together with a report of the Board of Directors of such Company with respect to— (i) the state of affairs of the Producer Company;
(4)(d)(ii)the amount proposed to be carried to reserve;
(4)(d)(iii)the amount to be paid as limited return on share capital;
(4)(d)(iv)the amount proposed to be disbursed as patronage bonus;
(4)(d)(v)the material changes and commitments, if any, affecting the financial position of the Producer Company and its subsidiary, which have occurred in between the date of the annual accounts of the Producer Company to which the balance-sheet relates and the date of the report of the Board;
(4)(d)(vi)any other matter of importance relating to energy conservation, environmental protection, expenditure or earnings in foreign exchanges;
(4)(d)(vii)any other matter which is required to be, or may be, specified by the Board;
(4)(e)the text of the draft resolution for appointment of auditors;
(4)(f)the text of any draft resolution proposing amendment to the memorandum or articles to be considered at the general meeting, alongwith the recommendations of the Board.
(5)The Board of Directors shall, on the requisition made in writing, duly signed and setting out the matters for the consideration, made by one-third of the Members entitled to vote in any general meeting, proceed to call an extraordinary general meeting in accordance with the relevant provisions contained in Chapter VII.
The Board of Directors must call an extraordinary general meeting if one-third of the members entitled to vote make a written requisition.
(6)Every annual general meeting shall be called, for a time during business hours, on a day that is not a public holiday and shall be held at the registered office of the Producer Company or at some other place within the city, town or village in which the registered office of the Company is situate.
Annual general meetings must be held on a business day, at the registered office or another location in the same city, town, or village.
(7)A general meeting of the Producer Company shall be called by giving not less than fourteen days prior notice in writing.
A general meeting must be called with at least 14 days' prior notice in writing.
(8)The notice of the general meeting indicating the date, time and place of the meeting shall be sent to every Member and auditor of the Producer Company.
The notice of the general meeting must be sent to every member and auditor of the Producer Company.
(9)Unless the articles of the Producer Company provide for a larger number, one-fourth of the total number of members of the Producer Company shall be the quorum for its annual general meeting.
One-fourth of the total number of members is the quorum for the annual general meeting, unless the articles provide for a larger number.
(10)The proceedings of every annual general meeting alongwith the report of the Board of Directors, the audited balance-sheet and the profit and loss account shall be filed with the Registrar within sixty days of the date on which the annual general meeting is held, with an annual return alongwith the filing fees as applicable under the Act.
The proceedings of the annual general meeting, along with the report and financial statements, must be filed with the Registrar within 60 days.
(11)In the case where a Producer Company is formed by Producer Institutions, such Institutions shall be represented in the general body through the Chairman or the Chief Executive thereof who shall be competent to act on its behalf:
Producer Institutions must be represented at the general body through their Chairman or Chief Executive, unless they are in default or failure.
provisoProvided that a Producer Institution shall not be represented if such Institution is in default or failure referred to in clauses (d) to (f) of sub-section (1) of section 378Q.
(11)PART V SHARE CAPITAL AND MEMBERS RIGHTS
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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.