Section 378C - Formation of Producer Company and its registration

Formation of Producer Company permits producers to incorporate with limited liability and private-company status upon registrar certification.

Producer Companies may be formed by ten or more individual producers, two or more Producer Institutions, or a combination meeting the objects of section 378B and registration requirements; the Registrar shall, within thirty days of receiving required documents and satisfaction of statutory prerequisites, register the memorandum and articles and issue a certificate of incorporation. Such companies are limited by shares, may reimburse promoters for direct promotion and registration costs subject to first-general-meeting approval, become bodies corporate as if private limited companies with no membership limit, and shall not be deemed public limited companies.