Producer company governance: articles must codify mutual assistance principles, one member one vote and surplus distribution rules. Section 378G requires Producer Company articles to enshrine mutual assistance principles and governance: voluntary membership, generally one member one vote, Board administration accountable to members, limited return on share capital, equitable surplus distribution for business development, common facilities and member participation, member education in mutuality, and active cooperation with similar organisations. It further mandates detailed provisions covering membership qualifications and transfers, patronage and patronage based voting, board constitution and director terms and procedures, chairman election and voting rules, withheld price and patronage bonus mechanisms, equity allotment in lieu of sale proceeds, reserves and funding limits, member credit, information rights, dissolution distributions, corporate reorganisations, and procedural requirements for laying foundational documents before members.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Producer company governance: articles must codify mutual assistance principles, one member one vote and surplus distribution rules.
Section 378G requires Producer Company articles to enshrine mutual assistance principles and governance: voluntary membership, generally one member one vote, Board administration accountable to members, limited return on share capital, equitable surplus distribution for business development, common facilities and member participation, member education in mutuality, and active cooperation with similar organisations. It further mandates detailed provisions covering membership qualifications and transfers, patronage and patronage based voting, board constitution and director terms and procedures, chairman election and voting rules, withheld price and patronage bonus mechanisms, equity allotment in lieu of sale proceeds, reserves and funding limits, member credit, information rights, dissolution distributions, corporate reorganisations, and procedural requirements for laying foundational documents before members.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
