Question ID :
Incorporation of a Producer Company
One NGO has promoted 4 Producer company for villagers in different areas of a district and the same NGO now wants to form a Producer Company with those 4 producer company as its members/shareholders at the district level for the reason below
1)The Grants given to the different Producer Company can be monitored well.
2)The procurement and sales of all the 4 Producer Companies can be negotiated well.
3)The Management of the companies can be monitored well.
Overall it will be easier for the NGO to keep an eye on the working of the company.
But as per the provisions of Producer Companies Act a Producer Company can be formed by
1)Ten or more producers (individuals); or
2)Two or more producer institutions; or
3)Combination of the above two (10+2).
My question is whether 2 or more Producer companies as stated above can be considered as a producer institutions and whether they can form a Producer Company.
I have one more question on same lines. Whether Producer Institutions which does not have PAN Card can become a member/shareholder of a Producer Company?
Please reply my above query. Thanks in advance
Answer ID :
Apr 27, 2020
CORPORATE & OTHER LAWS
CA. JHA SHANKAR KUMAR on
Aug 11, 2022