Sections 378ZM, 378ZN, 378ZO and 378ZP of the Companies Act 2013

(1) If any person, other than a Producer Company registered under this Chapter, carries on business under any name containing the words "Producer Company Limited", the person is punishable with fine which may extend to ten thousand rupees for every day during which that name is used.

(2) A director or officer who wilfully fails to furnish information relating to the affairs of the Producer Company when required by a Member or a duly authorised person is liable to imprisonment for a term which may extend to six months and fine equivalent to five per cent of the turnover of the company during the preceding financial year.

(3) A director or officer who fails to hand over books of account, documents or property in his custody to the Producer Company, or fails to convene the annual general meeting or other general meetings, is punishable with fine which may extend to one lakh rupees and, for a continuing default or failure, an additional fine which may extend to ten thousand rupees for every day during which it continues.

(1) A Producer Company may, by resolution at its general meeting, transfer its assets and liabilities, wholly or partly, to another Producer Company that agrees by resolution to the transfer for an object specified in section 378B, or divide itself into two or more new Producer Companies.

(2) Two or more Producer Companies may resolve to amalgamate and form a new Producer Company, or merge one Producer Company with another.

(3) The resolution must be passed at a general meeting by a majority of total Members, with the right of vote of not less than two-thirds of Members present and voting, and must contain the particulars of the proposed transaction.

(4)-(7) Written notice with the proposed resolution must be given to Members and creditors. A non-consenting Member or creditor has the statutory option specified in the section. A person who does not exercise the option within the prescribed one-month period is deemed to have consented. The resolution takes effect after one month or after all Members and creditors assent, whichever is earlier.

(8) The resolution may make detailed provision for the future conduct of affairs, purchase of shares or interests, reduction of share capital where applicable, treatment of agreements, property transfers, vesting of undertakings and liabilities, allotment of securities or interests, continuation of legal proceedings, dissolution without winding up, dissenting Members or creditors, taxes, and incidental or consequential matters.

(9)-(15) Once effective, the resolution operates as sufficient conveyance for vesting assets and liabilities. The section also provides for satisfaction of claims, cancellation of registration and dissolution in specified transfers, mergers, amalgamations and divisions, preservation of pre-existing rights and obligations, continuation of legal proceedings, and striking off by the Registrar.

(16)-(18) A Member, creditor or employee aggrieved by a transfer of assets, division, amalgamation or merger may appeal to the Tribunal within thirty days of the resolution. The Tribunal must provide a reasonable opportunity of hearing, and the transaction remains subject to the Tribunal's decision where an appeal is filed.

(1) A dispute concerning the formation, management or business of a Producer Company among Members, former Members, persons claiming membership or nominees of deceased Members; between such persons and the Producer Company, its Board, office-bearers or liquidator; or between the Producer Company or its Board and specified directors or office-bearers, is to be settled by conciliation or arbitration under the Arbitration and Conciliation Act, 1996 as though the parties had consented in writing.

The statutory explanation includes claims for debts or other amounts due, specified claims involving a surety and principal debtor, a Producer Company's claim against a Member for failure to supply produce, and a Member's claim against the Producer Company for not taking goods supplied by the Member.

(2) If a question arises whether a dispute relates to the formation, management or business of the Producer Company, that question is referred to the arbitrator, whose decision on it is final under the section.

(1) Where a Producer Company fails to commence business within one year of registration, ceases to transact business with Members, or the Registrar is satisfied after inquiry that it is no longer carrying on any object specified in section 378B, the Registrar may order its name to be struck off. Before such an order, the Producer Company and all its directors must receive notice to show cause and a reasonable opportunity to represent their case.

(2) Where the Registrar has reasonable cause to believe that a Producer Company is not maintaining the specified mutual assistance principles, its name is to be struck off in accordance with section 248 of the Companies Act, 2013.

(3)-(4) An aggrieved Member may appeal to the Tribunal within sixty days of the order. If an appeal is filed, the strike-off order does not take effect until the appeal is disposed of.