Procedure Change in Directors of Producer Company
Producer Company management plan is designed to describe that in what way the business functions on an on-going basis. Here, we discuss Change in Directors of Producer Company process.
What is the Producer Company?
Producer Company comprises not only legal formalities & marketing the products but also promoting the company, organizing the members, accountability, auditing, etc. Thus, the manual is designed to give first-hand information about the various processes involved in the incorporation, operation, and management of a Producer Company. A major source of information for this manual came from the experiences of practitioners involved in the process to incorporate and establish Producers groups/company.
Who can be appointed as Director of Producer Company?
The management plans small highpoint the logistics of the association such as the several responsibilities of the management team, the tasks assigned to each division within the company, & capital & expense requirements related to the operation and management of the business. There are 2 areas that require being accounted for when developing the operations of one’s company. However, the 1starea is the organizational structure of the company & the 2nd is the expense and capital requirement associated with its operation.
Anyone of the following combination of producers can incorporate a producer company: –
- 10 or more producers (individuals); or
- 2 or more producer institutions; or
- Combination of the above two (10+2).
Every Producer Company shall have minimum 10 and not more than 15 directors. The maximum numbers are 15 directors and the number can be increased by passing a special resolution. A full-time chief executive should be appointed by the board and shall be entrusted with substantial powers of management as the board may determine.
However, if any of the directors resign from his post the election will be conducted within the period of 90 days from the date of resignation of such director. The Director shall hold his office for a period not less than 1 year but not more than 5 years as may be specified in the articles. Every director shall be eligible for reappointment. The Directors of the Board are elected by the members in the Annual General Meeting. The Board may appoint one or more expert directors or additional directors not exceeding one-fifth of the total number of directors. The expert director and additional director shall hold the post for the period as prescribed in the provision.
Expert directors or an additional director may be co-opted but shall not exceed 1/5th of the total number of directors subject to articles of association. Such expert directors shall not have the right to vote in the election of the Chairman but are eligible to be elected as a Chairman.
The post of Director may be vacated in producer company-
- If he is convicted by the Court of Law for any offense involving moral turpitude and sentenced imprisonment not less than six months
- made a default in repayment of any advances or loan taken from any company or institution or person and such defaults continues for 90 days
- made a default in repayment of loan taken from the Producer Company in which he is a Director
- The Producer Company in which he is a Director fails to file annual accounts and annual returns; repay the deposit, bonus, dividend, etc.
- made default in conducting the election for the Director
- made default in conducting Annual General Meeting
