Section 378ZC: Special user rights
This section is for outlining the special rights and transferability of related instruments for active producer Members in a Producer Company.
The section, clause by clause
What the section says
In plain terms
(1)The producers, who are active Members may, if so provided in the articles, have special rights and the Producer Company may issue appropriate instruments to them in respect of such special rights.
Active Members who are producers may have special rights, as stated in the company's articles, and the Producer Company can issue them special instruments related to these rights.
(2)The instruments of the Producer Company issued under sub-section (1) shall, after obtaining approval of the Board in that behalf, be transferable to any other active Member of that Producer Company.
The Producer Company's instruments issued for special rights can be transferred to another active Member after getting approval from the Board.
explanationExplanation.—For the purposes of this section, the expression “special right” means any right relating to supply of additional produce by the active Member or any other right relating to his produce which may be conferred upon him by the Board.
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.