Section 378ZB: Share capital
This section regulates the composition and distribution of share capital in a Producer Company.
The section, clause by clause
What the section says
In plain terms
(1)The share capital of a Producer Company shall consist of equity shares only.
A Producer Company's share capital must only consist of equity shares.
(2)The shares held by a Member in a Producer Company, shall as far as may be, be in proportion to the patronage of that company.
Members' shares in a Producer Company should be proportional to the company's patronage.
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.