Companies Act Section 378K — Effect of incorporation of Producer Company

CHAPTER XXI

Commercial / Corporate

Summary

Every shareholder of the inter-State co-operative society, as of the day just before the Producer Company is registered (called the date of transformation), is automatically treated as a shareholder of the Producer Company from that registration date onward. This applies to the extent of the face value of the shares that the person already held in the co-operative society.

Official Text

Every shareholder of the inter-State co-operative society immediately before the date of registration of Producer Company (hereafter in this Chapter referred to as the date of transformation) shall be deemed to be registered on and from that date as a shareholder of the Producer Company to the extent of the face value of the shares held by such shareholder.