"Producer institution" means a Producer Company or any other institution having only producer or producers or Producer Company or Producer Companies as its member whether incorporated or not having any of the objects referred to in section 581B and which agrees to make use of the services of the Producer Company or Producer Companies as provided in its articles.
This type of company is beneficial for the persons involved in production of primary sector.
BENEFITS OF PRODUCER COMPANIES TO PRODUCER INDIVIDUALS AND/OR INSTITUTIONS
- 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.