Section 378ZS - Re-conversion of Producer Company to inter-State co-operative society

Re-conversion of Producer Company to inter-state co-operative society follows Tribunal-supervised member or creditor approval and filing requirements.

Re-conversion of a Producer Company to an inter-State co-operative society requires an application to the Tribunal following either member approval by a specified supermajority or a creditor request by creditors representing a substantial value. The Tribunal directs meetings, and if the requisite majority in number and value present and voting agree, it may sanction the re-conversion after being satisfied that all material facts and financial disclosures are made. The sanction is effective only upon filing a certified copy with the Registrar, copies of the order must be annexed to subsequent constitutional documents, penalties attach for non-filing, and the Tribunal may stay proceedings while the application is pending. Following sanction, the company must apply for registration as a multi-State or other co-operative society and report the registration to relevant authorities.