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Why Producer Company

  • 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.
  • To provide an opportunity (on a purely voluntary basis), to the existing large multi-state cooperative institutions and societies, to voluntarily convert themselves into the new form of producer companies.

Cooperative company Producer company
It registered under the Cooperative society Act Registered under the Indian company Act
Cooperative company is single objected Producer company is multi objectives
Cooperative company share is not tradable and transformable Share is not Tradable but it can transferable to limited members on per value
Cooperative company Area of operation is restricted Area of restriction is entire union of India take operation
Cooperative company membership is individual and cooperatives Membership will be individual, group,Association, producer of service.
One member can vote only one vote but register of cooperatives have veto power One member can vote only one vote company cannot hold veto power.
Borrowing power is restricted. Borrowing power is more freedom and more alternative.