Section 378 of the Companies Act, 2013
Section 378 of the Companies Act, 2013 falls under Part IXA, which was introduced to govern Producer Companies (inserted by the Companies (Amendment) Act, 2020).
🔹 Section 378 – Definitions (for Producer Companies)
This section provides definitions of key terms used in the chapter on Producer Companies, such as:
📘 Important Definitions under Section 378:
Producer – Any person engaged in any activity connected with or relatable to any primary produce.
Producer Company – A company formed and registered under the Companies Act as a Producer Company under Part IXA.
Member – A person or producer institution who/which has been admitted as a member of a Producer Company.
Primary Produce includes:
Agricultural produce
Horticultural, floricultural, animal husbandry, forestry, dairy, poultry, pisciculture, etc.
Products from cottage industries
Any activity intended to increase production/improve quality of above produce
🧠Purpose of Section 378:
To lay a foundation for co-operative-style companies (Producer Companies), enabling farmers and producers to collectively own and manage businesses for better income and bargaining power.
RELATED Blog
0 comments