Legal
Important Provisions Relating To Producer Company:
I. The members have necessarily to be primary producers
ii. Name of the company shall end with the words “Producer Company Limited”.
iii. The limit of maximum number of members is not applicable to these Companies
iv. On registration, the producer company shall become as if it is a Private Limited Company for the
purpose of application of law and administration of the company
v. Minimum No. of 10 member (individual).
vi. Share capital of a Producer Company shall consist of equity shares only
vii. Minimum 5 and not more than 15 directors
viii. Producer Company can carry only activity prescribed under the Act.
ix. Only of individuals, then voting rights shall be based on a single vote for every member.
x. A full time chief executive should (CEO) be appointed by the board.
xi. Initiator could be 'a person' or 'a group of persons' who takes the responsibility to initiate and establish
a producer company. Further, 'initiator' could also be one of the promoters of the company.
RESPONSIBILITIES FOR THE INCORPORATION
It is the responsibility of the initiator to take certain steps for the incorporation of the company. He, along
with other promoters, have to get drafted the 'Memorandum and Articles of Association', file them with 'the
Registrar of Companies' along with other documents and papers, carry out corrections, if any, required by
the 'Office of the Registrar' and finally collect the 'Certificate of Incorporation'. Initiator also has to mobilize
as well as invite people to be shareholders of the company.
PRE- INCORPORATION:
1. Normal Conditions:
I. At Least 10 Producer: Producer who will promote/ incorporate the Company. Promoters may be
individual or producer institutes.
ii. At Least 5 Directors: Directors should be individual only.
iii. Generally, in most of the cases, Promoters and Directors are the same in Companies.
2. Obtain Digital Signature–
The Subscriber applying for availability of name and the proposed Directors need to have DSC.
Requirement to Apply for DSC:
All 10 members should have DSC
1. Pan Card Self Attested
2. Residential Proof Self Attested
3. Dully fill and sign DSC application form.
www.Venture-Care.com/Magazine
December 2017
18