PRODUCER COMPANY AS INTERSTATE CO-OPERATIVE SOCIETY

MEANING

Producer companies mean the companies which are registered under the companies act,2013 and it is formed by (A) by any 10 or more individual every individual should be producer (B) 2 or more producer institution (C) combination of 10 or more individual and more producer institution and the things which have been produced through farming activities like mention below :

Producer Company Incorporation

Conditions for Producer Company Registration

• The minimal requirements include Five directors & INR Five Lakhs paid-up capital.
• 2 or more producer institutions
• Combination of 10 or more producers or individual institutions.
• 10 or more single people, each of them being creators or producers.

Minimum eligibility for Producer Company Registration

 

 

Benefits of Farmer Producer Company

• Competitive Advantage: Yearly compliance gives a competitive edge in the market. It can be used in advertising the business and assuring the investors/ customers about the Producer Company’s business.
• Active Status: As stated earlier, regular default in annual compliances results in striking down of name of the Producer Company by the registrar. So, Yearly compliance helps in marinating active status.
• Avoiding Penalties: Many times MSME end up with big penalties as they do not comply with annual compliances. So, regular yearly annual compliances result in avoiding heavy penalties.
• Correctness Of Data: Yearly compliance by the companies ensures that the data collected for annual compliance is correct.
• Credibility & Transparency: Proper compliance according to company law is required of each and every company. This regular compliance helps the Producer Company in raising its credibility.
• In government tenders, loans, etc., the authority or banks, etc. consider regular compliance as criteria for ensuring the credibility & transparency of an organization.
• Client Assurance: Regular Yearly compliance results in assuring the clients that the Producer Company is regularly reviewing its operation. So, they can trust the Producer Company regarding their operations.

MEANING OF CO-OPERATIVE SOCIETY

A voluntary association of people who come together and invest their small savings to form co – cooperative society. It is established for the mutual benefit of members.

Minimum 10 members are required to form a cooperative society. There is no upper limit of members.

Some examples of co-operative society are-

• Consumer co – cooperative society- it buys goods from producers or wholesalers in large quantity then sells to its members.
• Credit co-operative society – it provides loans to its members at a reasonable rate.
• Producer co-operative society – formed by small-scale producers.
• Housing co – cooperative society – formed by people who come together to buy a piece of land and build a residential building on it.

OPTION FOR CONVERSION OF INTERSTATE CO-OPERATIVE SOCIETY TO BECOME PRODUCER COMPANY

1. An inter-state co – a cooperative society that wants to get convert into a producer company can convert itself by applying to the registrar.
2. The object of the company shall not be confirmed to a single state.

Following documents shall be attached to the application for the conversion-

• Copy of special resolution passed at the annual general meeting which is approved by not less than 2/3 members of the society for incorporation as a producer company.
• A statement of the name, address of the director, and chief executive of the society.
• A list of all the members of the society.
• A statement showing that society is engaged in one or more objects which are required by the producer company.
• A declaration that all the above requirements are true and correct
• All the above requirements are certified by 2 or more directors of the society.

3. After receiving the application from the registrar. The register shall verify the application and issue the certificate of incorporation within 30 days of receiving the application.
4. The registrar of the company is bound to inform the registrar of society with whom the society is registered earlier for dealing with the society from its register.

WHO CAN OPT FOR REGISTERED AS A COOPERATIVE SOCIETY

• A cooperative society formed by the producer.
• A cooperative society is formed by a federation or union of co – cooperative societies of producers.
• Co-operatives of producers.

RECONVERSION OF PRODUCER COMPANY INTO INTERSTATE CO-OPERATIVE SOCIETY

1. Application to HCis to be given Application shall be made after passing the special resolution by 2/3 of members present and voting or ¾ of the creditors.
2. HC shall direct the company to hold the meeting of the members of the meeting of the creditors.
3. Obtain approval in the meeting of members of the creditors.
4. If HC is satisfied with the application then HC shall sanction the scheme which will be binding on all the members or creditors.
5. Filing the copy of the certified order to the registrar of the company.
6. If any default is made then rs. 100 is fine for each day to the company and officer of the company who is in default.
7. After that copy of the order is annexed to every copy of the memorandum issued thereafter by the company.

FAQ ON PRODUCER COMPANY AS INTERSTATE CO-OPERATIVE SOCIETY

Q:-  can a federation or union of co – cooperative societies of producers formed a producer company?

Ans.- yes, any federation or union of co-operative societies of producers are eligible to form a producer company.

Q : – Who can certify the documents which are submitted along with the application of conversion of inter-state co-operative society into producer company?

Ans.- any 2 or more directors can certify the documents which are submitted along with the application of conversion of inter-state co-operative society into a producer company.

Q : – at what time registrar shall issue the certificate of incorporation for the conversion of inter-state co-operative society into the producer company?

Ans.- The registrar shall issue a certificate of incorporation within 30 days of receiving the application for conversion of inter-state co-operative society into a producer company.