There are serval ways to understand a business making, i am using internet as my tool , i am doing my home work for that also.Now what is "Producer company " you all might be thinking about it.Now you all must be aware about the company act under which all the companies we know are registered.As like that the company act  has an amendment that any group ,individual or co-operative socities can work as a company but these will be producer company, which will have farmers as their members and rest of the things will be same as the companies we know.I will like to tell you all about this but please seed me something that you feel will long for more time and also is main problem that the farmers are facing today ,I need to move fast guys so make it as urgent as possible.

I am in a need of all problems faced Indian farmer cause I want to provide services for them.please all of you help me for making my plan successful.Please give me ideas ill make it possible.The plan is like this  i will look into the problems that  farmers are facing today such as less share in the rupee ,lack of information,lack of co-operativeness,etc.It is simple i have to concentrate upon the main problem and also think about it in a business sense.I need to have knowledge, i know ,i will get it .I want to tell the farmers which schemes are provided by the goverment for their benifit and how to utilize it in a effective manner

As you all might be thinking upon the schemes that really exits are not made available to all by the way of corruption .but yes, ther is one thing called market libralization which is hapening in our country also as we are member of WTO.due to this tranperency in all goverment activities is increasing which will make them to work properly with minimum corruption. In that Our countries all markets will get open by 2017 including agriculture .as our average  land holding is not greater than 2.5acres our farmers will have to sell the land or make other utilization of it,but my personel thinking is that we all are united by the way of agriculture somehow.and we as a country can make it possible to save our farmers fro the world copition .i am not saying it in the way of negetivity but i want to make them compitative as any company .todays scenario is that most of the producer companies are in madhya pradesh more than 17 and increasing.i want to drive that thing in maharshtra and other states also.

I will regularly tell you the formation and preperation of it.as i told you that i want to make one of mine please seed me

Background

The concept of Producer Companies was introduced in 2002 by incorporating a new Part IXA (section 581A to 581ZT) into the Companies Act,1956("the Act") based on the recommendations of an expert committee led by an economist, Y. K. Alagh.

Aim of the Committee was to -

• frame a legislation that would enable incorporation of cooperatives as companies and conversion of existing cooperatives into companies;

• ensuring the unique elements of cooperative business with a regulatory framework similar to that of companies.

Meaning of Producer Company :

A producer company is basically a body corporate registered as Producer Company under

Companies Act, 1956 and shall carry on or relate to any of following activities classified broadly:-

(a) production, harvesting, processing, procurement, grading, pooling, handling, marketing,

selling, export of *primary produce of the Members or import of goods or services for their

benefit :

(b) rendering technical services, consultancy services, training, education, research and

development and all other activities for the promotion of the interests of its Members;

(c) generation, transmission and distribution of power, revitalization of land and water resources,

their use, conservation and communications relatable to primary produce;

(d) promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce;

*Primary produce has been defined as a produce of farmers arising from agriculture including animal husbandry, horticulture, floriculture, pisciculture, viticulture, forestry, forest products, re-vegetation, bee raising and farming plantation products: produce of persons engaged in hand-loom, handicraft and other cottage industries: by - products of such products; and products arising out of ancillary industries. -By Ashish M.

based on Law as on 5th March, 2011 1 of 7

Salient Provisions of Companies Act relating to Producer Companies

Incorporation

Any of the following combination of producers can incorporate a producer company:

• ten or more producers (individuals); or
• two or more producer institutions; or
• combination of the above two (10+2).

Registration

(a) In a Producer Company, only persons engaged in an activity connected with, or related to, primary produce can participate in the ownership. The members have necessarily to be primary producers.

(b) These companies shall be termed as "Companies with Limited Liability" and the liability of the members will be limited to the amount, if any, unpaid on the shares.

(c) The name of the company shall end with the words "Producer Company Limited"

(d) On registration, the producer company shall become as if it is a private limited company for the purpose of application of law and administration of the company (however it shall comply with the specific provisions of part IXA).

(e) The maximum number of 50 members is not applicable to these companies.

Share Capital and Voting Rights

(i) The share capital of a Producer Company shall consist of equity shares only.

(ii) Members' equity cannot be publicly traded but only transferred.

(iii) Voting when membership is

• only of individuals then voting rights shall be based on a single vote for every member.
• only of producer institutions then voting rights on the basis of their participation.
• combination of both individuals and producer institutions then voting rights shall be

based on a single vote for every member.