The Producer Companies Rules, 2021
The
Producer Companies Rules, 2021
GOVERNMENT
OF INDIA
MINISTRY
OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 11th February, 2021
1. Short title and commencement.-
(1) These rules may be called the Producer Companies Rules, 2021.
(2) They shall come into force on the date of their publication in the
Official Gazette.
2. Applicability.-
These rules shall apply to a Producer Company as referred in clause (I) of
section 378A.
3. Definitions.- (1) In these rules, unless
the context otherwise requires,-
(a) "Act" means the Companies Act,
2013 (18 of 2013);
(b) "section"
means the section of the Act;
(c) "co-operative
society" means a society registered or deemed to be registered under any
law relating to co-operative societies for the time being in force in any
State.
(2) Words and expressions used in these rules
but not defined and defined in the Act or in the Companies (Specification of Definitions
Details) Rules, 2014, shall have the same meanings respectively assigned to
them in the Act or in the said rules.
4. Change of place of
registered office from one State to another.- The rules 27, 30 and 31 of the
Companies (Incorporation) Rules, 2014, including the forms stated therein shall
be applied for the purpose of change of place of registered office of a
Producer Company from one State to another.
5. Investment of
general reserves.- A Producer Company shall make investments from and out of
its general reserves in anyone or in combination of the following, namely:-
(a) in approved
securities, fixed deposits, units and bonds issued by the Central Government or
State Governments or co-operative societies or scheduled bank; or
(b) in a co-operative bank, State co-operative
bank, co-operative land development bank or Central co-operative bank; or
(c) with any other
scheduled bank; or
(d) in any of the securities specified in
section 20 of the Indian Trusts Act, 1882 (02 of 1882); or
(e) in the shares or
securities of any other inter-State co-operative society or any co-operative
society; or
(f) in the shares,
securities or assets of public financial institutions specified under clause
(72) of section 2 of the Act.
Author Comment:- The Central Government has introduce a policy on Farmer Producer Organization (FPO) in 2013 to connect our agriculture Sector with Corporate Entities. In another word we can say that the objective of Central Government is transforming the agriculture sector into a corporate market. To promote this FARMER PRODUCER ORGANISATIONS the Central Government has made POLICY & PROCESS GUIDELINES.
On July 5, 2019, the Centre announced a plan to promote 10,000 new farmer producer companies over the next five years.
Vision of 2013 Policy:-
To build a prosperous and sustainable agriculture sector by promoting and supporting member-owned Producer Organizations, that enable farmers to enhance productivity through efficient, cost-effective and sustainable resource use and realize higher returns for their produce, through collective action supported by the government, and fruitful collaboration with academia, research agencies, civil society and the private sector.
Mission of Policy:-
ü To
promote economically viable, democratic, and self governing Farmer Producer
Organizations (FPOs)
ü To
provide support for the promotion of such FPOs by qualified and experienced
Resource Institutions (RIs).
ü To
provide the required assistance and resources – policy action, inputs,
technical knowledge, financial resources, and infrastructure – to strengthen
these FPOs.
ü To
remove hurdles in enabling farmers access the markets through their FPOs, both
as buyers and sellers.
ü To
create an enabling policy environment for investments in FPOs to leverage their
collective production and marketing power.
Final
Comments on Rules:-
Thus these Rules
promote the objective of ease of doing business policies of the Government. Rule
4 of the Producer Companies Rules, 2021 will provide easy route of shifting of
registered office of the Farmer Producer Organization/Company (FPO/FPC).
And Rule 5 of the Producer Companies Rules, 2021 will open the windows for the investment in different entities to the Farmer Producer Organization.
MCA notification link:- http://www.mca.gov.in/Ministry/pdf/ProducerCompaniesRules_12022021.pdf
"Try not to become a man of success. Rather become a man of value."
- Albert Einstein
Author:- Author of this Article is CS Vinay Pandey
About CS Vinay Pandey:- CS Vinay Pandey is Associate Member of Institute of Company Secretaries of India and Law Graduate from VBSPU, Jaunpur. He is Co-Founder of Professional Study Point and faculty of Financial Management Paper of CS Professional Programme.
CS Vinay Pandey
(Company Secretary & Writer)
(CS, LLB, B.Com)
cs.vinaypandey@gmail.com
Mob/Whatsapp: 9911473074
Disclaimer: The content of this article is intended to provide a general guide to the subject matter and that the same shall not be treated as legal advice. For any queries, the author can be reached at cs.vinaypandey@gmail.com
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