(1) Where a Producer Company fails to commence business within one year of its registration or ceases to transact business with the Members or if the Registrar is satisfied, after making such inquiry as he thinks fit, that the Producer Company is no longer carrying on any of its objects specified in section 378B, he shall make an order striking off the name of the Producer Company, which shall thereupon cease to exist forthwith:
Provided that no such order cancelling the registration as aforesaid shall be passed until a notice to show cause has been given by the Registrar to the Producer Company with a copy to all its directors on the proposed action and reasonable opportunity to represent its case has been given.
(2) Where the Registrar has reasonable cause to believe that a Producer Company is not maintaining any of the mutual assistance principles specified, he shall strike its name off the register in accordance with the provisions contained in section 248.
(3) Any Member of a Producer Company, who is aggrieved by an order made under sub-section (1), may appeal to the Tribunal within sixty days of the order.
(4) Where an appeal is filed under sub-section (3), the
order of striking off the name shall not take effect until
the appeal is disposed of.
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1. Ins. by Act 29 of 2020, s. 52 (w.e.f. 11-2-2021).
Section 378ZN Amalgamation, merger or division, etc., to form new Producer Companies
Section 378ZP Strike off name of Producer Company
Section 378ZQ Provisions of this Chapter to override other laws
Section 378ZR Application of provisions relating to private companies
Section 378ZS Re-conversion of Producer Company to inter-State co-operative society
Section 378ZT Power to modify Act in its application to Producer Companies