Section 378ZC of the Companies Act, 2013: Special user rights

The Companies Act, 2013

Chapter– XXIA Producer Companies

Part- V Share Capital and Members Rights

1[Section 378ZC: Special user rights.

378ZC. (1) The producers, who are active Members may, if so provided in the articles, have special rights and the Producer Company may issue appropriate instruments to them in respect of such special rights.

(2) The instruments of the Producer Company issued under sub-section (1) shall, after obtaining approval of the Board in that behalf, be transferable to any other active Member of that Producer Company.

Explanation.—For the purposes of this section, the expression “special right” means any right relating to supply of additional produce by the active Member or any other right relating to his produce which may be conferred upon him by the Board.]


Reference

1. Inserted by the Companies (Amendment) Act, 2020, w.e.f. 11.02.2021[S.O. 644(E) dated 11.02.2021].

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