Beruflich Dokumente
Kultur Dokumente
1
On the basis of Incorporation
one member can vote only one vote one member can vote only one vote
but register of cooperatives have veto company can not hold veto power.
power
borrowing power is restricted borrowing power is more freedom
CA Rajkumar S. Adukia 19
and more alternative.
• PROCEDURE FOR INCORPORATION OF PRODUCER COMPANY
• Section 581C of the Companies Act, 1956 lays down the provision
relating to formation and registration of producer company.
• 10 or more individuals,
• each of them being a producer or
• two or more producer institutions or
• a combination of ten or more individuals and producer
• institutions, desirous of forming a producer company
having its objects, specified in section 581B
Benefits
better bargaining position in the market
Elimination of intermediaries
Reduced Cost due to Bulk purchases
Acquisition of better technology resulting in enhanced quality and
productivity
Timely and easy availability of inputs
Every Member shall, on the share capital contributed, receive only a
limited return
The surplus if any, remaining after making provision for payment of
limited return and reserves referred to in section 581ZI, may be
disbursed as patronage bonus, amongst the Members, in proportion
to their participation in the business of the Producer Company, either
in cash or by way of allotment of equity shares, or both, as may be
decided by the Members at the general meeting.
Associations not for profit
• Section 8 + Rule 19 and 20 of Companies
(Incorporation) Rules, 2014
• Applicant prove to the satisfaction of the
Central Government that:
(a) its objects includes promotion of commerce,
art, science, sports, education, research, social
welfare, religion, charity, protection of
environment or any such other object;
(b) the company on incorporation intends to
apply its profits, if any, or other income in
promoting such object; and
(c) the company intends to prohibit the
payment of any dividend to its members.
features
Not required to add ltd. or pvt. Ltd after name
The company is registered without paying any stamp duty on its
Memorandum and Articles.
enjoys all the privileges of a limited company
exemption by a notification is granted by the Central Government.
Can have firm as its member
Alteration of MoA after approval of CG
Circular 2014- CC powers transferred to Regional Director
Contravention
Licence cancel
Amalgamation
Winding up in public Interest
SEBI SRO Regulation 2004-Application by Sec 25 Co only.
• Tax Provisions
Section 2(45)
•51% paid-up share cap
•CG/SG/jointly
Interpretations
• Hindustan Steel Works Construction Co. Ltd. v. State of
Kerala (1998) 2 CLJ 383-
– Notwithstanding all the pervasive control of the Government, the
Government company is neither a Government department nor a
Government establishment.
• A.K. Bindal v. Union of India (2003) 114 Com Cases 590
(SC)]-
– Since employees of Government companies are not
Government servants
– they have no legal right to claim that the Government should pay
their salary or that the additional expenditure incurred on
account of revision of their pay scales should be met by the
Government.
Foreign Company
• Section 2942)
– Company/Body Corporate
– Incorporated Outside
• Have place of business in India
– By itself
– Through agent
– Electronically
• Conduct business activity in India
Illegal Association
• Section 464/Sec 11 Old
• No company, association or partnership
– consisting of more than 10 persons for the purpose of carrying
on the business of banking and more than 20 persons for the
purpose of carrying on any other business can be formed
• unless it is registered under the Companies Act or is formed in pursuance of
some other Indian
• Exception
– NGO
– HUF
Holding & Subsidiary