Cos 378E — Benefits to Members

Companies Act, 2013

Statutory text

(1)  Subject  to  the  provisions  made  in  articles,  every  Member  shall initially receive only such value for the produce or products pooled and supplied as the Board of Producer
Company may determine, and the withheld price may be disbursed later in cash or in kind or by allotment of equity shares, in proportion to the produce supplied to the Producer Company during the financial year to such extent and in such manner and subject to such conditions as may be decided by the Board.
(2) Every Member shall, on the share capital contributed, receive only a limited return:
Provided  that  every  such  Member  may  be  allotted  bonus  shares  in  accordance with  the  provisions contained in section 378ZJ.
(3) The  surplus if any, remaining after making provision for payment of limited return and reserves referred to in section 378ZI, may be disbursed as patronage bonus, amongst the Members, in proportion to their participation in the business of the Producer Company, either in cash or by way of allotment of equity shares, or both, as may be decided by the Members at the general meeting.

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