MCA has notified the Producer Companies (General Reserve) Rules, 2003. These rules shall apply to a Producer Company as referred in clause (l) of section 378A. These rules shall come into force from February 11, 2020.
Highlights:
- Change of place of registered office from one State to another. – The Rules 27 (Notice and Verification of Change of Situation of the Registered Office – Form INC 22), 30 (Shifting of Registered office from one State or Union Territory to another state – Form INC 23) and 31 (Certified Copy of Central Government’s Order – Form INC 28) of the Companies (Incorporation) Rules, 2014, including the forms stated therein shall be applied for the purpose of change of place of registered office of a Producer Company from one State to another.
- Investment of general reserves – A Producer Company shall make investments from and out of its general reserves in any one or in combination of the following, namely: –
- in approved securities, fixed deposits, units and bonds issued by the Central Government or State Governments or co-operative societies or scheduled bank; or
- in a co-operative bank, State co-operative bank, co-operative land development bank or Central co-operative bank; or
- with any other scheduled bank; or
- in any of the securities specified in section 20 of the Indian Trusts Act, 1882 (02 of 1882); or
- in the shares or securities of any other inter-State co-operative society or any co-operative society; or
- in the shares, securities or assets of public financial institutions specified under clause (72) of section 2 of the Act.