New norms for converting society into producer company

NEW DELHI: The government has come out with stricter norms for conversion of cooperative society into a producer company.

Generally, a producer company is referred to an entity that has ten or more individuals, provided everyone one of them is a producer.

The Ministry of Corporate Affairs today said it has imposed certain conditions for conversion of cooperative society into a producer company.

"... on receipt of an application/form seeking conversion of a cooperative society (society not registered as the Multi State Society) into a producer company, the Registrar of Companies (ROCs) will seek a written consent from the local cooperative department of the concerned state," it said.

The society that wants to convert into a producer company under the Companies Act has to get certification from the local cooperative department.

"Further, the ROCs must satisfy themselves fully that the applicant society has indeed extended its activities outside the state where it is registered as a cooperative society under the local/state Level law governing cooperative societies...," the statement said.

The latest conditions came into effect from September 10.