Section 378D Membership and voting rights of Members of Producer Company
- Chapter
- XXIA · Producer Companies
- Amendments
- 1
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021378D. Membership and voting rights of Members of Producer Company.—
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(1)(a) In a case where the membership consists solely of individual Members, the voting rights shall be based on a single vote for every MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records., irrespective of his shareholding or patronage of the Producer Company.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(b) In a case where the membership consists of Producer Institutions only, the voting rights of such Producer Institutions shall be determined on the basis of their participation in the business of the Producer Company in the previous year, as may be specified by articles:
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021Provided that during the first year of registration of a Producer Company, the voting rights shall be determined on the basis of the shareholding by such Producer Institutions.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(c) In a case where the membership consists of individuals and Producer Institutions, the voting rights shall be computed on the basis of a single vote for every MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records..
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(2) The articles of any Producer Company may provide for the conditions, subject to which a MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. may continue to retain his membership, and the manner in which voting rights shall be exercised by the Members.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), any Producer Company may, if so authorised by its articles, restrict the voting rights to active Members, in any special or general meeting.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(4) No person, who has any business interest which is in conflict with business of the Producer Company, shall become a MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. of that Company.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(5) A MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records., who acquires any business interest which is in conflict with the business of the Producer Company, shall cease to be a MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. of that Company and be removed as a MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. in accordance with the articles.