SCOPE OF PRODUCER COMPANIES IN BIKANER by : DR. T.K. JAIN AFTERSCHO☺OL centre for social entrepreneurship sivakamu veterinary hospital road bikaner 334001 rajasthan, india FOR – PGPSE PARTICIPANTS mobile : 91+9414430763 5 DECEMBER 09
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WHAT IS A PRODUCER COMPANY? As per Part IX A of companies act 56 (amended in 2002) sec. 583A (k) : producer means a person who is engaged in primary production. 10 or more producers or 2 or more institutions can make a producer company. Example : 10 carpet makers (workers) can make a company 5 DECEMBER 09
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What is producer institution?
Sec. 581A (m) : a company having only producers / producer companies as its members is called producer institution.
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Conversion of interstate cooperative society
Any interstate cooperative society can convert itself into a producer company.
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Why producer company? It gives benefits to workers. They can get patronage bonus (bonus for producers only), they can get better prices of their good. They can use their collective power to make a company run. They can distributed profit among themselves and fix their own policie. They get privileges under various laws. 5 DECEMBER 09
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Loans to members and directors Ordinarly companies cant give loans to its members and directors. Producer companies can give loans to its members / directors for 3 months to 7 years. Producer company can also provide credit (credit goods etc. ) for 6 months to its members. Thus producers will get benefit. 5 DECEMBER 09
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Directors ...
Producer company may appoint 5 to 15 directors for 1 to 5 years. Interstate cooperative producer comapny can have more than 15 directors. These directors are representatives of workers.
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donations....
A producer comapny can give donations to other producer companies or to societies working to promote the interests of workers.
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Example of producer company
Ranga Sutra is a producer company of weavers. It has its offices in Bikaner also.
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Areas where producer companies are possible ? ? ? Bikaner is a place of craftsman, artists and traditional artists, they can make : ex. : painters (like Usta artists) Papad makers (those who make papad ) Goldsmith ( making jewellery & minakari) Juti makers (Rajasthani Juti makers) artisans (like blue pottery makers, weavers) Bhujia / namkeen makers 5 DECEMBER 09
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Sudha Soni wants to set up a producer company of goldsmiths. Can we collect donations from her proposed company? ? As per company law, she can give max. 6 lakhs or upto 3% profit as donation, that too for the work which is for the benefit of workers. It depends on for what we are taking donations ... if you want donation for political pupose – answer is NO 5 DECEMBER 09
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AGM in producer comapny
First AGM is held in 90 days of incorporation and thereafter every year (max. Gap 15 months). 14 day notice has to be given to members. Qorum here is 1/4th of members EGM can be called by 1/3rd of members as per section 169 to 186 of companies act. 1956 5 DECEMBER 09
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Meeting of board of director
One in every 3 months - notice of 7 days required. Quorum = 1/3rd members.
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How will producer company help workers? Sharing profits giving better opportunity to undertake marketing, publicity, displays, and negotiation ability producer company can set up its branches and have networking with other companies. 5 DECEMBER 09
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THANKS.... GIVE YOUR SUGGESTIONS AND JOIN AFTERSCHOOOL NETWORK / START AFTERSCHOOOL SOCIAL ENTREPRENEURSHIP NETWORK IN YOUR CITY
[email protected] PGPSE – WORLD'S MOST COMPREHENSIVE PROGRAMME IN SOCIAL ENTREPRENEURSHIP 5 DECEMBER 09
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