Compliances of Producer Company
COMPLIANCES OF PRODUCER COMPANY
INTRODUCTION:
Producer Company means a body corporate having objects or activities specified in section 581B of the Companies Act, 1956, and registered as Producer Company under the act.
A producer Company is formed by 10 or more individuals or two or more institutions dealing in agricultural produces or post-harvest processing activities. Thus, a producer company has been conceptualized and structured with a view that the business activities relating to agriculture, be channelized and governed in a formal manner.
Under sub-section (1) the registration of the Producer Company shall become a body corporate as if it is a private limited company to which the provisions contained in Part IXA of Companies Act, 1956.
THE IMPORTANT FEATURES OF PRODUCER COMPANY INCLUDES THE FOLLOWING:
- No need of Minimum Capital Requirement.
- There must be minimum of 5 directors in a producer company
- Producer Company is always a private limited company.
- Producer Company will be governed by the provisions of Chapter IXA of Companies Act, 1956.
- Voting rights in Producer Company shall be based on a single vote for every member.
- No person, who has any business interest which is in conflict with business of the Producer Company, shall become a Member of that Company.
- Every Producer Company shall deal primarily with the produce of its active Members for carrying out any of its objects specified in this section.
- The name of the Company shall end with “Producer Company Limited” which shall be stated in the Memorandum.
- The AOA and MOA of Producer Company shall be prepared in accordance with the provision under section 581F and 581G respectively.
- One-fourth of the total membership shall constitute the quorum at a General Meeting.
- Share Capital of a producer company shall consist of equity shares only.
ANNUAL COMPLIANCES OF PRODUCER COMPANY:
| SL.NO | COMPLIANCE | FORM | PARTICULARS OF COMPLIANCE |
| 1. | Receipt of MBP-1 | Form MBP- 1 | Every Director is required to submit with the Company a fresh MBP-1, whenever there is change in his interest from the earlier given MBP-1. |
| 2. | Receipt of DIR- 8 | Form DIR – 8 | Every Director of the Company in each Financial Year will file with the Company disclosure of non-disqualification |
| 3. |
E- Forms Filing Requirements Annual Form | E-form: MGT-7 | Annual Return: Every Company will file its Annual Return within 60 days of holding of Annual General Meeting.Annual Return will be for the period 1st April to 31st March |
| E-form: AOC-4 | Financial Statement: Company is required to file its Balance Sheet along with Statement of Profit and Loss Account, Cash flow statement, Directors’ Report and Auditors’ Report in this form within 30 days of holding of Annual General Meeting | ||
| 4. | Annual Form | E-form DPT-3 | Return of Deposit: Company is required to file this form every year on or before 30th June in respect of return of Deposit and Particulars not considered as Deposit as on 31st March |
| 5. | Event-Based Form | BEN-2 | Disclosure of Significant Beneficial Owner: Company shall file BEN-2 within 30 days of receipt of BEN-1 from Shareholder.
Note: On a regular basis, company has to check whether there is any SBO in the company due to change in its shareholding or due to change in shareholding of body corporate members. |
| 6. | Annual Form | DIR-3 KYC | KYC of Directors: All the Directors of the company shall file this form on or before 30th September every year for all the directors of the Company. |
| 7. | Half Yearly Return | MSME-1 | Delay in Payment to MSME Vendor: Company has to file this return half-yearly in respect of pending payments to MSME vendors as at end of half-year.
April to Sep – 30th October October to March – 30th April |
| 8. | Directors’ Report | - | Directors’Report shall be prepared by mentioning all the information required for Company under Section 134 read with relevant rules and relevant provisions of other Act. |
| 9. | Circulation of Financial Statement &other relevant Documents | - | Company will send to the members of the Company approved Financial Statement, Directors’ Report and Auditors’ Report at least 14 clear days before the Annual General Meeting. |
| 10. | Notice of AGM | - | The Producer Company shall in each year hold an Annual General Meeting and not more than 15 months shall elapse between the date of one Annual General Meeting to the next.
A general meeting of the Producer Company shall be called by giving not less than fourteen days prior notice in writing |
| 11. | Sending Notice of AGM | - | The notice calling the annual general meeting shall be accompanied by the following documents, namely: –
(a) the agenda of the annual general meeting ; (b) the minutes of the previous annual general meeting or the extraordinary general meeting ; (c) the names of candidates for election, if any, to the office of director including a statement of qualifications in respect of each candidate; (d) the audited balance-sheet and profit and loss accounts of the Producer Company and its subsidiary, if any etc |
| 12. | Board Meetings | - | The board shall meet at least once every three months and at least four such meetings shall be convened every year.
Quorum:- 1/3rd of the total strength of Directors subject to a minimum – 3 |
| 13. | Appointment of Auditor | E-form ADT-1 | The auditor will be appointed for 5 (Five) years and form ADT-1 will be filed for a 5-year appointment within 15 days of Annual General Meeting. |