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closure of producer company
closure of producer company

CLOSURE OF PRODUCER COMPANY

WHAT IS PRODUCER COMPANY?


A producer company is a body corporate engaged in any one or all of the following objects that is production, harvesting, grading, pooling, procurement, handling, marketing, selling, and the export of primary produce of the members or import of goods or services for their benefit.

    The producer company’s primary object is to deal with the produce of its members and it must also carry on any of the following activities on behalf of its members:

  • Purifying including preserving, drying, distilling, brewing, venting, canning and packaging of the produce of its Members;

  • manufacture, sale or supply of machinery, equipment or consumables mostly to its Members;

  • Providing education on the mutual abetment principles to its members and others;

  • Provide technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members;

  • Generation, dissemination and distribution of power, reanimation of land and water resources, their use, conservation and communication relatable to primary produce;

  • Indemnity of producers or their primary produce;

  • Promoting techniques of familiarity and mutual assistance;

  • Welfare measures or facilities for the benefit of Members as may be decided by the Board members;

  • Any other activity, accompanying or incidental to any of the activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner;

  • Financing of procuring, processing, marketing or other activities which include extending of credit facilities or any other financial services to its Members

GROUNDS ON WHICH A PRODUCER COMPANY CAN BE WINDUP

  • BY THE TRIBUNAL

    If the company by passing a special resolution has resolved that the company be wound up by the Tribunal

    If the company in anyway has acted against the interest of the security of the State and the authority and integrity of India

    If the Tribunal is of the opinion that the affairs of the company have been operated in a fraudulent or in a illegal manner

    If the company has not filed or has made any default in filing of financial statements or annual returns and other annual or event based compliances with the Registrar for immediately preceding 5 consecutive financial years

    If the Tribunal is of the opinion that it is just, sensible and equitable that the company should be wound up

  • VOLUNTARILY WOUND UP

    If the company has passes a resolution with the consent of its majority members for winding up of the Company

    If the period fixed for the duration of the company by the articles has expired

DIFFERENT MODES OF CLOSING A PRODUCER COMPANY

  1. By the Tribunal (in case of compulsory winding up)

  2. By Voluntary winding up

  • VOLUNTARY WINDING UP

    1. Issuing a written demand for debt payments to the proposed company

    2. Submit a winding up petition to the court and the company

    3. Court hearing for the petition

    4. Issuing of winding up order by the court

    5. Meeting of creditors and other relevant parties

    6. Appointment of a liquidator

    7. Comprehension and distribution of company’s assets to the creditors

    8. Realize of duties for liquidator

    9. Dissolution of the company

  • OVERVIEW OF WINDING UP OF PRODUCER COMPANY

      Voluntary winding up which may be:

    1. Member’s Voluntary winding up

    2. Creditor’s Voluntary winding up

      In case of voluntary winding up, the whole process is done without court supervision. When the winding up is complete, the relevant documents are filed before the court for getting the order of dissolution. A Voluntary winding up can be proceeding by members or creditors. The conditions in which company may be wound up voluntarily are:

    1. When the fixed period for the duration of the company in its articles has expired

    2. When an event on the occurrence of which the company is to be dissolved as per its articles happen

    3. The company resolves by special resolution at the general meeting to be voluntary winding up.

PROCEDURE OF CLOSING A PRODUCER COMPANY

    The procedure for Producer Company closure voluntarily, involves the following steps:

  • Passing a resolution with consent of the 2/3rd number of the creditors of the Producer Company, for voluntary winding up of the company

  • The notice of this board resolution is to be submitted to the related registrar of companies within the 10 days of its approval from the creditors. A declaration is also needed to be submitted which contain the information that the Producer Company has no debts, or if there are some debts, these will be paid off through sales of its assets within one year.

  • Filing the application for striking off the Producer Company in Form STK-2 with the concerned registrar of companies, along with the attachment of Board Resolution in favor of winding up, in case, STK-2 Form can be file in the case when the closing Producer Company has been inactive for one year after its incorporation, within the 30 days from the date of signing the statement of assets and liabilities of the closing Producer Company.

  • The notice for winding up is also to be advertised in the Official Gazette and also in a newspaper which is commonly circulated in the district where the head office or registered office of the closing Producer Company is situated.

  • Appointing a registered Liquidator for processing of necessary tasks associated with the winding up of the Producer Company. This liquidator is required to maintain and submit all required reports and accounts that is Submission of the Statement of Accounts, Statement of Assets and Liabilities, Indemnity Bond, etc to the Tribunal and also to the Registrar of companies.

  • Lastly, if application is satisfactory, the Tribunal and the Registrar will pass the winding up, and announce the Producer Company closed.