1.MEMBERS’ BENEFITS:-
• Members will be eligible to receive bonus shares in proportion to the shares held by them
2.TAX BENEFITS:-
• It is important to note that the IT Act does not essentially provide any special benefits or exemptions to producer companies by definition.
But subject to the kind of agricultural activity carried out, certain tax benefits can be availed.
3.LOANS AND INVESTMENTS:-
• Loans and advances, against security mentioned in articles to any Member,
repayable within a period exceeding three months but not exceeding seven years from the date of disbursement if such loans or advances.
4.WHY PRODUCER COMPANY?
To offer a statutory and regulatory framework that creates the potential for producer-owned enterprises to compete with other enterprises on a competitive footing.
• To provide for the method of formation and registration of “Producer Companies” which, inter alia carries the principles of “mutual assistance” and “Co-operation”
within the more liberal regulatory framework afforded by the company law with suitable adaptation.
