Section 378ZK: Loan, etc., to Members
This section allows the Board to provide financial assistance to members under certain conditions.
The section, clause by clause
What the section says
In plain terms
The Board may, subject to the provisions made in articles, provide financial assistance to the Members of the Producer Company by way of—
(a)credit facility, to any Member, in connection with the business of the Producer Company, for a period not exceeding six months;
(b)loans and advances, against security specified in articles to any Member, repayable within a period exceeding three months but not exceeding seven years from the date of disbursement of such loan or advances: Provided that any loan or advance to any director or his relative shall be granted only after the approval by the Members in general meeting.
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.