Producer Company means a body corporate having activities or objects specified in section 581B is a produced company under the Companies Act, 1956. This type of Company was introduced in the year 2002. Producer Company is dealt with by the provision of the Companies Act 1956. The producer company can be incorporated into the production, harvesting, Grading, handling, and Marketing. Further in this Piece of Writing, we shall be discussing the Annual filing of Producer Company.
Feature of Producer Company
Following are some listed characteristics of Producer Company, they are:
- The Producer Company are treated as a Private Limited Company
- The Producer Company are limited by shares capital, and the member of the Company has benefits of Limited liability.
- The maximum numbers of members in a Producer company can exceed 50.
- A Producer Company cannot be concreted into a Pvt. Ltd company.
Condition to be fulfilled by Producer Company
The following are the listed condition with the concept of a producer company.
- The primary producer is a member of the Company.
- These companies are termed as companies with limited liability; the member’s liability will be limited to several unpaid shares.
- The company end shall be ended with the words of Producer Company Limited.
- This Company can be treated as a Private Limited Company for application of law and administration of the company law.
- The maximum number of members limit does not apply to these companies.
Compliances and Annual Filing of Producer Company
There is much compliance that is needed to be followed by the Producer Company in each financial year; the first Annual General Meeting shall be within 90 days of its incorporation, where the member must adopt the Article of Producer Company and shall appoint the Board of Director, the following are the information contained in the notice of AGM.
- Agenda of the Annual General Meeting
- Holding Annual General Meeting each financial year
- Previous Annual General Meeting/Extraordinary General Meeting Minute
- Be it any type of Company, annual filing with ROC is mandatory.
- The name of the candidate for election.
- The Profit & Loss Account and Audited Balance Sheet of the Producer Company and its subsidiary along with the Board of Director’s report.
- A Producer Company must file an Annual compliance regularly to ensure that the Company gets good legal standing.
- Final Annual Return
Advantages of Annual Filing of Producer Company
The following are the Advantages of the annual filing of Producer Company
- Credibility and Transparency: Annual Filing of Producer Company is mandatory; when the Company regularly maintains its Annual compliance, it raises its credibility and transparency as an organisation.
- Active Status: Default in Compliance and Non–Filing may result in striking off the Company’s name by the Registrar of Company. Hence annual compliance helps in maintaining Active Status.
- Assurance customers and Investors: Annual Compliance creates competition for the Producer Company in the market. This can be useful to advertise the business and assure the investors and customers about the company’s business.
- Avoiding Penalties: Regularly filling the Annual of Producer Company on time can avoid the heavy penalties.
Compliances for a Producer Company
|Name of the Company||The name of the producer company must end with the word producer company limited.|
|Total Number of Directors||Minimum – 5 Directors Maximum – 15 Directors, In the case of an Inter-State co-operative society formed as a producer company, then such Company may have more than fifteen directors for one year starting from the date of its formation company.|
|Election of the Directors||With-in 90 days of the registration of the producer company, the process of election shall be conducted.|
|Additional Directors and Expert Directors||Both the Expert Directors may be appointed, but the same shall not exceed 1/5 of the total numbers of available directors subject to the Article of Association.|
|A Private Company||After obtaining the registration, the producer company will become a body corporate just like a Pvt. Ltd. company to which all the provisions specified in this part apply.|
|Share Capital & the transfer of shares of a Producer Company||The Company will consist of equity shares capital only. The entire active member may have special rights if the same is provided in the Article.|
|Internal Audit||Procedure company must have an internal Audit of its accounts and will be carried out in such as manner as specified in the Article By the Chartered Accountant.|
The below-mentioned default by directors of the producer companies amounts to the penalty:
- Handling the custody of the books of Account
- If fails to convene an annual general meeting or other general meetings
The Company may be Punishable with the fine of Rupee 1 Lakh, and if the default is in continuation, then the everyday penalty of 10000 is levied till the default continues.
The above is the provision of penalties for non – compliance and non–annual filing of Producer Company.
After going through this writing, it can be concluded that there various Annual filing of producer company which has to be complied with to avoid heavy penalties and fines, the advantage of regular filings are Credibility and Transparency, Active status and, Assurance customers and Investors.
Read our Article:A Complete Guide on Annual Filings for Limited Liability Partnership