Producer company structure secures member-focused production, financing, limited capital returns and patronage-based surplus distribution. A Producer Company is a registered corporate entity formed by qualifying producers to carry out specified activities related to primary produce, including production, processing, marketing, supply of inputs, technical services, financing and ancillary functions. On registration it assumes private company status. Membership rules provide one-member one-vote where members are individuals. Members receive board-determined value for pooled produce, with withheld amounts payable in cash, kind or equity; share capital is equity only and members obtain a limited return, while surplus after limited return and reserves may be distributed as patronage bonus in proportion to participation.
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 structure secures member-focused production, financing, limited capital returns and patronage-based surplus distribution.
A Producer Company is a registered corporate entity formed by qualifying producers to carry out specified activities related to primary produce, including production, processing, marketing, supply of inputs, technical services, financing and ancillary functions. On registration it assumes private company status. Membership rules provide one-member one-vote where members are individuals. Members receive board-determined value for pooled produce, with withheld amounts payable in cash, kind or equity; share capital is equity only and members obtain a limited return, while surplus after limited return and reserves may be distributed as patronage bonus in proportion to participation.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI OCR ✕
of 
TaxTMI 
TaxTMI 
