Flock blog
Reading regulatory filings, sourced and dated.
Plain-English guides to the public filings Flock tracks: 13F reports, NSE and BSE shareholding patterns, bulk and block deals, and FII/DII flows. Every claim links to its source. Research, not advice.
What Is a Producer Company Under Section 378A?
A producer company is a body corporate of producers registered under Chapter XXIA of the Companies Act, 2013. Read the definitions in section 378A.
Objects of a Producer Company: Section 378B
The objects of a producer company are the eleven activities section 378B lists, from procurement to financing. The company deals primarily with active Members.
How to Register a Producer Company in India
To register a producer company you need ten or more individual producers or two Producer Institutions, plus a section 378F memorandum and section 378G articles.
Producer Company Voting Rights Under Section 378D
Producer company voting rights are one vote per Member where the membership is individuals, and participation based for Producer Institutions. Section 378D.
Producer Company Share Capital: Section 378ZB
Producer company share capital is equity shares only, held in proportion to patronage, and the shares are not transferable outside the section 378ZD routes.
Powers of a Producer Company Board: Section 378R
A producer company board has five to fifteen directors under section 378-O, each in office one to five years, and holds the eleven powers section 378R(2) lists.
Producer Company Accounts and Audit Requirements
Producer company accounts and audit run on sections 378ZE to 378ZG: five classes of books, a chartered accountant internal audit, and seven extra report items.
Producer Company Penalty Under Section 378ZM
The producer company penalty in section 378ZM fines improper use of the name up to ten thousand rupees a day, and reaches officers who withhold books.
Strike Off of a Producer Company: Section 378ZP
Strike off of a producer company runs on two routes in section 378ZP: the Registrar's order on three grounds, or the section 248 route for mutual assistance.
Wrongful Withholding of Property: Section 452
Wrongful withholding of property by an officer or employee carries a fine of one to five lakh rupees under section 452 of the Companies Act, 2013, on complaint.
What Is the Residual Penalty Under Section 450?
Section 450 sets the residual penalty of the Companies Act: ten thousand rupees where no penalty is provided elsewhere, plus a daily amount and two caps.
What Is Repeated Default Under Section 451?
Section 451 doubles the fine where the same offence is repeated within three years. How repeated default differs from its penalty twin in section 454A.
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