Legal
PROS OF PRODUCER COMPANY REGISTRATION
Separate Legal Entity
A producer company is a legal entity and a juristic person established under the Act. Therefore, a producer
company has wide legal capacity and can own property and also incur debts. The members (Directors) of a
producer company have no liability to the creditors of a producer company.
Easy Management
The Board of Management of a producer company can be easily changed by filing simple forms with the
Registrar of Companies. The Board of Management of a producer company controls the activities of the
producer company.
Uninterrupted Existence
A producer company has 'perpetual succession', that is continued or uninterrupted existence until it is
legally dissolved. A producer company, being a separate legal person, is unaffected by the death or other
departure of any member but continues to be in existence irrespective of the changes in membership.
Owning Property
A producer company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No
member can make any claim upon the property of the producer company as long as it is a going concern.
Benefits of Producer Company Registration
The Producer Companies have certain exclusive Benefits:-
A separate legal entity offering limited liability and perpetuity.
Government by the central Government, the Producer companies offer greater creditability than that
provided by unregistered producer's organization.
Changes in the Board of management of a producer company can easily and swiftly be made just through
filing some simple forms with ROC.
A registered Producer company entitled to own, sell, enjoy, or alienate a property in its own name.
A producer company can accept deposit in the form of RD/FD, and give maturity as well as distribute
loans to its farmer/agriculturist members, and charge reasonable interest from them.
PRODUCER COMPANY REGISTRATION:
To register a Producer Company in India, the following members in any of the combination is necessary:
Ten or more individuals, each of them being a producer; or
Two or more producer institutions; or
A combination of ten or more individuals and producer institutions
www.Venture-Care.com/Magazine
December 2017
17