Companies Act Section 378B — Objects of Producer Company
CHAPTER XXI
Commercial / Corporate
Summary
Sub-section (1) lists the matters that the objects of a Producer Company must relate to. These can cover any or all of the following: production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of the primary produce of its Members, or import of goods or services for their benefit. The Producer Company may carry out these activities either by itself or through another institution.
Under clause (b) of sub-section (1), the objects may include processing of the Members' produce, which covers activities like preserving, drying, distilling, brewing, vinting, canning, and packaging.
Under clause (c) of sub-section (1), the objects may include manufacturing, selling, or supplying machinery, equipment, or consumables mainly to its Members.
Under clause (d) of sub-section (1), the objects may include providing education on mutual assistance principles to its Members and others.
Under clause (e) of sub-section (1), the objects may include rendering technical services, consultancy services, training, research and development, and all other activities for promoting the interests of its Members.
Under clause (f) of sub-section (1), the objects may include generation, transmission, and distribution of power, revitalisation of land and water resources, their use, conservation, and communications that relate to primary produce.
Under clause (g) of sub-section (1), the objects may include insurance of producers or their primary produce.
Under clause (h) of sub-section (1), the objects may include promoting techniques of mutuality and mutual assistance.
Under clause (i) of sub-section (1), the objects may include welfare measures or facilities for the benefit of Members, as decided by the Board.
Under clause (j) of sub-section (1), the objects may include any other activity that is ancillary or incidental to any of the activities in clauses (a) to (i), or other activities that may promote the principles of mutuality and mutual assistance amongst the Members in any other manner.
Under clause (k) of sub-section (1), the objects may include financing of procurement, processing, marketing, or other activities specified in clauses (a) to (j), which includes extending credit facilities or any other financial services to its Members.
Sub-section (2) states that every Producer Company must deal primarily with the produce of its active Members when carrying out any of its objects specified in this section.
Official Text
(1) The objects of the Producer Company shall relate to all or any of the following matters, namely:—
(a) production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit:
Provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution;
(b) processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members;
(c) manufacture, sale or supply of machinery, equipment or consumables mainly to its Members;
(d) providing education on the mutual assistance principles to its Members and others;
(e) rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members;
(f) generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communications relatable to primary produce;
(g) insurance of producers or their primary produce;
(h) promoting techniques of mutuality and mutual assistance;
(i) welfare measures or facilities for the benefit of Members as may be decided by the Board;
(j) any other activity, ancillary or incidental to any of the activities referred to in clauses
(a) to
(i) or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner;
(k) financing of procurement, processing, marketing or other activities specified in clauses
(a) to
(j) which include extending of credit facilities or any other financial services to its Members.’’.
(2) Every Producer Company shall deal primarily with the produce of its active Members for carrying out any of its objects specified in this section.