Producer Companies may invest reserves, acquire shares, and form subsidiaries subject to investment limits and member approvals.

Producer Companies must invest general reserves in approved securities or prescribed modes and may acquire shares of other Producer Companies or subscribe to capital, form subsidiaries or joint ventures by special resolution. Investments in other companies by a Producer Company and its subsidiaries are capped at thirty per cent. of paid-up capital and free reserves unless a special resolution and prior Central Government approval permit excess. Investments must align with the company's objects. Disposal of such investments requires member approval by special resolution. A register of all investments must be maintained at the registered office and opened for member inspection.

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