Producer Company Concept

The new concept of manufacturing business companies TILL RECENTLY, the Companies recreate, 1956 (the Act), recognized exclusively three types of companies, namely, companies limited by shares (sub-divided into public limited and individual(a) limited companies), companies limited by guarantees and unlimited companies. With the coming into impel on February 6 of the Companies (Amendment) Act 2002, (1 of 2003), a fourth category, ` maker companies, finds a place in the Act. For this, a new realm IXA, divided into 12 chapters, has been included in the Act, comprising 46 sections, interestingly numbered as 581A to 581Z and 581ZA to 581ZT. However, the section that defines the various types of companies that can be structured under the Act remains unaltered. The new concept of producer companies is based on the recommendations of an expert committee led by noted economist, Y. K. Alagh. The committee was asked (a) to frame a statute that would enable incorporation of cooperatives as companies and conversion of existing cooperatives into companies and (b) to ensure that the proposed legislation accommodated the unique elements of cooperative business with a regulatory manakin similar to that of companies.

The new type is termed as `producer companionship, to indicate that only certain categories of persons can participate in the ownership of such companies. The members have necessarily to be ` elementary producers, that is, persons engaged in an activity connected with, or link to, primary produce. What is primary produce? In terms of the Act it is a produce of farmers arising from agriculture including animal husbandry, horticulture, floriculture, pisciculture, viticulture, forestry, forest products, re-vegetation, bee meridian and farming plantation products: produce of persons engaged in handloom, employment and other cottage industries: by - products of such products; and products arising out of ancillary industries. The 46 new sections respectively deal with incorporation of producer... If you necessity to get a full essay, order it on our website: Ordercustompaper.com

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