Section 378E Benefits to Members
- Chapter
- XXIA · Producer Companies
- Amendments
- 1
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021378E. Benefits to Members.—
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(1) Subject to the provisions made in articles, 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. shall initially receive only such value for the produce or products pooled and supplied as the Board of Producer Company may determine, and the withheld price may be disbursed later in cash or in kind or by allotment of equity shares, in proportion to the produce supplied to the Producer Company during the financial year to such extent and in such manner and subject to such conditions as may be decided by the Board.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(2) 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. shall, on the share capital contributed, receive only a limited return:
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021Provided that every such 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 be allotted bonus shares in accordance with the provisions contained in section 378ZJ.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(3) The surplus if any, remaining after making provision for payment of limited return and reserves referred to in section 378ZI, may be disbursed as patronage bonus, amongst the Members, in proportion to their participation in the business of the Producer Company, either in cash or by way of allotment of equity shares, or both, as may be decided by the Members at the general meeting.