(1) Every Producer Company shall maintain a general reserve in every financial year, in addition to any reserve maintained by it as may be specified in articles.
(2) In a case where the Producer Company does not have
sufficient funds in any financial year for transfer to
maintain the reserves as may be specified in articles, the
contribution to the reserve shall be shared amongst the
Members in proportion to their patronage in the business of
that Company in that year.
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1. Ins. by Act 29 of 2020, s. 52 (w.e.f. 11-2-2021).
Section 378ZA Annual general meetings
Section 378ZC Special user rights
Section 378ZD Transferability of shares and attendant rights
Section 378ZE Books of account
Section 378ZG Duties of auditor under this Chapter
Section 378ZH Donation or subscription by Producer Company
Section 378ZI General and other reserves
Section 378ZJ Issue of bonus shares
Section 378ZK Loan, etc., to Members
Section 378ZL Investment in other companies, formation of subsidiaries, etc